FEDERATION CHAIR THROWS DOWN THE GAUNTLET TO THE GOVERNMENT

Press release

Wednesday 19 September

In his opening speech to the National Housing Federation annual conference tonight, the Federation’s chair John Cross will set down five key challenges to the Government to solve the country’s social housing crisis.

Speaking on a platform alongside the housing minister Yvette Cooper, Mr Cross is expected to say:

“Like many people, I’m grateful to Yvette Cooper for managing to place the issue of affordable housing at the very top of the domestic agenda. It’s a fantastic achievement.

“But … we need the Government to give us a certain degree of flexibility and freedom in five main areas.
 
“First, and this is a real dilemma for the sector as a whole. We do need a more flexible rent regime. The rent formulae must be more responsive and relevant.

“If we are to build ever increasing numbers of more homes for lower levels of grant we must be allowed to increase rents by RPI plus 1%, instead of RPI plus 0.5%.

“And I know what some people will say – that it’s taxing the poorest to deliver new housing. But do you know what RRI plus 1% would do for rents? Increase them by 30 pence a week.

“But do you know what else it would do? Give us 20% more capacity to use for new and existing tenants and customers. To put it another way, we could build another 10,000 desperately needed new social homes every year.

“Second, the sector must be allowed and encouraged to build more homes for sale whether that be for outright sale or the various shared ownership tenures.

“There are already many success stories where the profits from sales have been used to cross-subsidise social housing for rent.

“Third, and we’re very glad that our arguments have been heard about recycled grant – housing associations must be free to use assets, and the surpluses they create to build secure businesses delivering for people, delivering for the communities we serve

“Fourth, housing associations must be given the freedom to build homes of the right design, of the right type, in the right places, to the right standards.

“To meet the requirements of those in need of new social housing, we must build large family homes, imaginative retirement homes and homes for people with extra support needs.

“Finally, we need ministers to recognise the competing demands on housing association resources, including their duty to invest in communities.

“As we all know, housing associations invest in employment, training, community cohesion, youth activities and much, much more.

“But, too many major documents – including the housing green paper – skirt over this critical area as though housing associations only invest in bricks and mortar.

“The core principle of our movement has been the desire to help improve the quality of life and the life chances of our tenants."