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Nobody pretends that reform of housing benefit will be easy but a report out today underlines the scale of the task.

The report by the Chartered Institute of Housing (CIH) does a great job of making the links between policies on housing, welfare and the labour market. The sobering conclusion for the government is that everything it has done so far has only succeeded in reducing the rate of growth of the housing benefit bill rather than reducing it.

So as fast as the government introduces cuts like the bedroom tax the bill keeps rising faster because of inflationary factors built into the system. Between 1997/98 and 2012/13 the total bill rose by 48 per cent in real terms.

-> Read the rest of this post on Inside Edge, my blog for Inside Housing


Home front

With eight months to go until the general election the battle to influence the manifestos has begun in earnest.

Party conference season begins with Labour on September 21 but organisations from across the housing spectrum have been publishing manifestos of their own in a bid to reach the politicians.

Conservative Home (see my blog here) was early out of the blocks but the influential Tory website has been followed by the Council of Mortgage Lenders (CML) and Confederation of British Industry (CBI) in the last week. The Fabian Society has just published a report last week on the ‘silent majority’ in favour of more social housing. The National Housing Federation (NHF) is set to reveal its election plans at its conference next week.

-> Read the rest of this post on Inside Edge, my blog for Inside Housing


The long goodbye to the bedroom tax

Three images spring to mind in the aftermath of Friday’s momentous vote to amend the bedroom tax.

The first is of a bunker deep in the bowels of DWP headquarters Caxton House. Iain Duncan Smith sits at a desk surrounded by a dwindling band of loyalists who still believe in the policy: his ministers Mark Harper and Lord Freud plus a loyal special adviser and perhaps a press officer.

AS IDS raves that nothing has changed (and that the universal credit is on time and on budget) I imagine the others exchanging nervous looks between themselves as they assure him that the removal of the spare room subsidy really is saving £1 million a day and making housing fairer.

-> Read the rest of this post on Inside Edge, my blog for Inside Housing


Beyond belief

So is it time to celebrate the rise in housing benefit claims by people in work as a reflection of the government’s success in getting people off benefits?

That was the claim made by Iain Duncan Smith at work and pensions questions yesterday as he answered Labour jibes about the soaring numbers of working households now dependent on state help with their rent.

The work and pensions secretary told Labour’s Emma Lewell-Buck:

‘The figure the hon. Lady did not give is that out-of-work housing benefit claims are falling, and that is because people who were claiming it are now going into work. That means that they are earning more money, which means that the likelihood of their being in poverty is far less. I wonder whether the hon. Lady would like to get up sometime and congratulate us on getting more people back to work and spending less on housing benefit as a result.’

-> Read the rest of this post on Inside Edge, my blog for Inside Housing

 


About time

Sellafield. Parental help. Mortgages lasting 40 years. Welcome to housing affordability in the 21st century.

Exhibit one is a survey by the TUC comparing median house prices and earnings in local authority areas across England. It finds that Copeland in Cumbria, home of the Sellafield nuclear reprocessing facility, is the only one that is easily affordable on less than three times earnings. Nowhere in southern England is affordable at less than five times earnings.

Exhibit two is an opinion poll of parents conducted by the National Housing Federation. It finds that 81 per cent of parents are worried about the impact of rising house prices on the next generation, 69 per cent think their children will not be able to buy without their financial support and 25 per cent are already saving for their children’s first home.

-> Read the rest of this post on Inside Edge, my blog for Inside Housing


Hard sell

As sales pass 20,000, what’s been the impact of England’s ‘reinviograted’ right to buy so far?

Figures released by the DCLG last week show 20,027 sales since April 2012, when the maximum discount was increased to £75,000. This followed David Cameron’s Conservative Party conference speech in October 2011, when he said the proceeds would be reinvested in new affordable homes.

The government continues to introduce extra sales incentives. These include a new maximum discount for London of £100,000 from April 2013, £100 million to improve access to mortgage finance plus right to buy sales agents, annual inflation uprating of discounts and an increase in the maximum percentage discount on a house. Finally, the Deregulation Bill will reduce the qualifying period from five years as a tenant to three once it completes remaining stages in the Lords and gets Royal Assent.

That’s the context. But what are the numbers? And what about the wider impacts warned about by critics? Here’s an assessment so far:

-> Read the rest of this post on Inside Edge, my blog for Inside Housing


Scottish independence: what’s the question?

It seems simple enough. Should Scotland be an independent country? Yes or No? Except that is not simple at all.

With less than a month to go until the referendum, the debate seems to be hung up on issues of detail that cannot possibly be settled until the negotiations that would follow a Yes vote. Ahead of the second debate between Alex Salmond and Alistair Darling this evening, the BBC identifies five unresolved questions: the currency, oil, border controls, the EU and Trident.

For me the questions seem much more fundamental, and much more numerous, than that. This is the perspective of a non-Scot who does not have a vote or any special insight. But here’s what a recent stay in Edinburgh (with Yes-supporting friends) got me thinking:

Read the rest of this entry »


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