HOMES FOR ALL POLICY
PREAMBLE
The right to a secure, sustainable and affordable home is not only a basic human right, it is a fundamental building block for our collective personal well being and wider economic growth. Investing in more affordable home building and home improvements not only contributes to our economic recovery but is also essential in providing housing opportunities for future generations. Providing decent, affordable homes has a long association with improvements to our health and personal well being.
Change can occur if we all make it our collective moral and social responsibility to make it happen.
The Social Justice Party is committed to that change.
The scale to which our national wealth (and indebtedness) is tied up in property, along with our national obsession with home ownership as the only secure route to enduring personal contentment, is highly questionable.
The total outstanding value of all residential mortgage loans is currently in the region of £1,657.6 billion.
The value of outstanding mortgage balances with arrears increased by 9.2% from the previous quarter, to £20.3 billion, and was 50.3% higher than a year earlier. (Source: Financial Conduct Authority data for the 4th quarter 2023).
Not only is housing more expensive in the UK relative to general prices than in any other OECD country, it is also a very strong determinant of overall wealth inequality. It is imperative that we move away from a model where speculative property investment has undermined the quality and security of homes for the majority of people.
The need to offer a radical transformative homes programme cannot be allowed to languish anymore. It is far too important a conversation to be controlled by an establishment elite. It needs to be driven by a network of local community grassroots groupings in collaboration with Local Government acting as the primary catalyst for change.
Publicly owned Council house building must be at the centre of a renewed effort to deliver homes that generate economic growth and delivers what communities need now and into the future.
Homes based on NEED not GREED.
Providing Homes for All
Context
There were just over 67 million people living in the UK in 2020, according to the Office for National Statistics’ latest estimate. This was a rise of 284,000 in a year and has followed the trend of recent years where the population has been slowly creeping up, though it is currently growing at the slowest rate for two decades.
To meet current and future housing needs we must significantly increase the supply of new homes. Most experts believe that by 2031 we need to build 340,000 new homes per year, whilst over the last decade we have averaged just 130,500 per year.
New housing development is important to the health of the UK economy. Quite apart from the social benefits that accrue from a well housed population, the house building industry contributes £19.2bn a year to the UK economy, supports 600,000 jobs and has a predominantly domestic supply chain.
Whilst it is important to consider supply, the rising cost of housing relative to income is a huge problem. New build supply can have an impact in reducing prices.
The SJP believes the national housing emphasis needs to shift from building homes for personal acquisition to publicly provided, secure and affordable homes for all.
The SJP in collaboration with Local Government seeks to increase the amount of publicly provided new build social housing by 90,000 per year and increase that number incrementally so that ultimately everyone can access an affordable, safe, secure and decent home. This building programme should be undertaken where possible, by local construction firms providing local apprenticeships and jobs in local communities.
Whilst increases in new home building will be necessary it does not need to be the only supply source providing homes fit for the future.
The SJP is committed to assessing the potential for alternative supply solutions from the existing stock of homes as this provides the opportunity to invest in innovative retrofitting, providing local employment and growing the local economy.
ALTERNATIVE HOME SOLUTIONS
Addressing Empty Homes
It is estimated that 1.5million homes are “vacant” in the UK or are not occupied a majority of the time. Over 250,000 homes are left empty in excess of 6 months, an increase of more than 12,556 since 2022 (Source Action on Empty Homes).
The SJP will lobby for local communities in partnership with not-for-profit social housing providers to purchase such property at discounted market rates so that these homes can be reprovisioned for local social housing purposes.
The SJP will also campaign for the introduction of a compulsory empty home tax where owners decline to cooperate.
Utilising Empty Town Centre Retail Space
The amount of empty retail space at both ground level and above diminishes the potential appeal of our town centres as prosperous, safe, vibrant, inclusive community spaces.
Apart from utilising empty space this initiative would help to repopulate and regenerate our diminishing High Streets.
Possible incentives for landlords committed to such reutilisation could include fixed period reductions in business rates or Tax considerations from HMRC.
The SJP alongside Local Government would advocate as part of its Future Homes Policy, for an audit of all town centre commercial properties to identify the landlords and require them to suggest how the empty space could be reutilised as rental accommodation or additional retail business start up space.
Different types of home ownership
Community Led Home Provision
Context
In order to meet future home building needs and empower local people with the personal and resource commitment to develop their community, different models of community engagement, participation, and social inclusion need to be established.
Local communities have become disempowered and marginalised. Too often we see overbearing and complacent bureaucrats overlooking people’s needs.
The SJP will prioritise and repurpose funding from money lenders, credit unions, and social enterprise investors for community led housing projects.
Second Homes/Holiday Lets/Buy to Let/Right to Buy
Context
Since the introduction of the Right to Buy scheme in 1980 which allowed sitting tenants to purchase their council homes with a significant discount, nearly 1 million homes were sold, an 18% reduction in stock. Replacing this stock at current levels of social and affordable house building would take 19 years, and at current levels of social rent delivery it would take 150 years, before even considering the loss of stock through sales under the Right to Buy .Even if rates of building were taken up to 90,000 units a year (the figure often used by housing campaigners as to the need for social rent homes) it would take a decade.
Following the Global Financial Crisis in 2008 the private rented sector had grown by around 1.4 million homes, a 39% increase, which incentivised individuals to become landlords given the potential capital gains and rental yields. Were this growth to be reversed overnight, the proportion of homeowners could increase by 9%, offsetting its recent decline, or the proportion living in the social rented sector could increase by a third (33%).
Buy to Let
Context
Between 2000 and 2007, the number of buy-to-let mortgages rose from 48,400 to 346,000, while their total value rose from £3.9bn to £45.7b.
The SJP will actively promote a focus on creating positive alternative options for sustainable investment, which challenge a culture of property speculation, and incentivise other ways of investing that could lead to a fairer distribution of wealth and stronger economic growth.
The SJP supports the suggestion to increase the current surcharge of 2% on home purchases in the UK if the buyer lacks citizenship or residency. Australia has a non resident excise duty of 15% and Canada 25%.
Right to Buy
Context
At a time of acute housing shortages, where more than one million people are on council housing waiting lists and councils are spending £1.74 billion annually on temporary accommodation, the LGA is calling for major reforms to the Right to Buy (RTB) scheme. Latest figures show that, for the last financial year, 10,896 homes were sold through RTB and only 3,447 have been replaced, resulting in a net loss of 7,449 social homes in 2022/23. (Source: Local Government Association (LGA) 13 Feb 2024).
The SJP will abolish the right to buy homes in the public sector. There can be no question that many people have invested in rental properties because of the deplorable pensions in the UK and the Social Justice Party is committed to address this issue.
The SJP would seek to extend the Right to Buy to renters and leasehold holders in the private sector. This would enable tenants in privately rented homes to have their rental contribution taken into account should the owner seek to sell the property.
The SJP will restrict the amount private sector money lenders can lend for the purchase of Right to Buy second homes in the private sector by imposing a surcharge on such loans.
Second Homes
We believe an increase in all local charges on existing second homes is necessary as well as imposing a transaction loan tax on money lenders offering loans to second home owners.
The SJP will require all second home property owners to provide property details to Councils so that Councils can produce annual audits to their local communities for public examination.
Holiday Homes
The SJP believes that local communities in cooperation with Local Government should require all holiday lets to be in a local licensing scheme and have the ultimate decision to impose limits in areas affected by poor housing or affordability issues.
The Rental Sector
Affordability
Many homes that meet the government’s definition of Affordable Housing (AH) are often not affordable to people on low incomes. However, publicly provided social housing for social renting where rents are pegged to local incomes makes social renting the most affordable type of housing available.
Joseph Rowntree Foundation JRF July 2022 (Making a House A Home) found that the proportion of social housing in England has fallen from 31% in 1980 to 17% in 2020, thus pushing lower-income households into relying on the private rented sector. In turn this has caused financial stress for low-income renters. Research from JRF finds that more than half (55%) of low-income private renters are paying rents they cannot afford, with some groups particularly hard hit. Single adults, families with children, and people from BAME groups face particularly high rates of rent that is unaffordable. Over half of all renters on low-incomes who face unaffordable rents would be lifted from this if they were to be offered homes at social rent levels (Rogaly et al, 2021).
The SJP will promote a Joseph Rowntree proposal of creating a clearer definition of affordable housing that keeps rent below one third of local household income. This will ensure that local homes are affordable for people that need it most.
Private Sector
Context
Everyone has the right to a secure and decent home. For England’s 11 million private renters, this basic right is out of reach. The private rented sector has doubled in size since 2000 and is now the second most common tenure in the UK. Despite this, no significant reform of tenure law in England has taken place since the 1980s, and 11 million private renters live in a sector that is not currently fit for purpose. Relative to other tenures, private renters spend more of their income on housing, report lower satisfaction, and are more likely to live in homes that are unsafe.
Private Home Renter’s Reform
The SJP supports:
- Abolishing Section 21 No Fault Evictions.
- Fixing the process for rent increases and appeals against above-market rents by establishing local tenant-led panels to agree any rent increases.
- Supporting tenants when forced to move by requiring landlords to pay tenants’ relocation costs.
- Ending automatic evictions for rent arrears.
- Allowing renters to make a house their own. Renters should be free to make minor changes and improvements to their property, to ensure their house feels like a home. The Government’s model tenancy agreement should be made mandatory to enable more renters to own pets.
- In order to ensure private renting tenures are fit for purpose, the SJP would support the establishment of a time limited tenants led commission to review all aspects of private tenure. Recommendations from the review to be legally enforceable.
Quality and condition of privately rented homes
Context
One way of measuring the quality of housing is through the Decent Homes Standard, a tool used to measure the improving standards of socially rented homes. A Decent Homes Standard exists for social tenants. The same needs to apply to people paying much higher rents in the Private Rented Sector.
The SJP will regulate in the private sector ensuring a smaller, higher-quality and better managed private rented sector, which provides flexibility to people that choose it and with appropriate financial support for people that need it.
Social Housing
Context
In 1979-80, gross government investment in social housing was around £14.5 billion in 2019-20 prices. In the last two decades the average yearly spend has been around £6.8 billion, falling to £5.9 billion in the ten years from 2010-11 to 2019-20, a 52-59% decrease.
The SJP will encourage the inclusion of other not for profit providers including local community housing groups to be part of an expanded public sector housing provision.
The SJP will seek evidence from all public sector home providers that a comprehensive charter of individual tenant’s rights is written into their constitution. The charter will emphasise tenant’s collective rights to participate as equal partners on housing matters in their communities.
Shortfalls between rent and rent assistance put both renters and local authorities under extreme pressure. Young people and large families have been particularly impacted by the restrictions to Local Housing Allowance, and the benefit cap. The cumulative impact of the welfare reforms combined with economic trends and higher housing costs in the private rented sector have increased poverty among working families.
The SJP will campaign for a root and branch review of the Housing benefit and Universal Credit scheme to ensure it remains fit for housing purposes and ensures that public money is targeted at those most in need, not subsidising private landlords rental investment portfolios.
The SJP would devolve central funding to Local Government to ensure that adequate funding is available to the 2.3 million households in the poorest income groups not receiving support through the benefits system, and missing out on current targeted support for home insulation.
Homelessness is not a lifestyle choice
Context
Security of employment, stability of personal circumstances, suitability and affordability of housing tenure are factors of concern for us all. If any one of those factors change let alone all of them the consequences can have devastating effects.
Some people are more at risk of being pushed into homelessness than others. People in low paid jobs, living in poverty and poor quality or insecure housing are more likely to experience homelessness.
For the last five years “core” homelessness has risen each year in England. Homelessness reached a peak in 2019, when numbers of homeless households rose from 207,600 to over 2019,00o at the end of 2019. By the end of 2021 research by Heriot Watt University estimates 227,000 were experiencing core homelessness. If nothing changes it is anticipated that up to 300,000 households could be considered homeless.
It is estimated that the cost of rough sleeping for 12 months is £20,128 per person compared with a cost of successful intervention of £1,426. (Source Crisis :At what cost)
The SJP would require Local Government, and voluntary agencies to have time limited emergency support plans in their local communities to cover unexpected lifestyle changes.
The SJP working in partnership with Local Government, Voluntary groups, Police, Probation and community tenants would seek to implement proactive strategies to reduce incidents of anti-social behaviour.
The SJP would allocate sufficient funding to Local Government to meet their local communities emergency support plans.
The SJP would undertake an immediate review of the welfare benefit system to ensure that it remains fit for purpose and meets the increases in the cost of living and rising rents crisis.
The SJP would require each Local Authority to produce an annual plan that will coordinate services from the NHS, Social Care, and Voluntary Agencies to provide integrated support to those requiring additional support by being proactive in preventing the risk of long term homelessness.
The SJP would outlaw any form of arbitrary rent or home buying discrimination aimed at individuals who are homeless.
The SJP would work proactively with Social Housing, Private renters to develop a range of tenancy incentivisation contracts which reward stable tenancy tenures.