London calling for an end to its housing crisis

The housing crisis of the 1940s crisis was caused by the Blitz and half finished pre-war slum clearance – but today’s problems are due to the lack of...

The housing crisis of the 1940s crisis was caused by the Blitz and half finished pre-war slum clearance – but today’s problems are due to the lack of house building over the past 40 years.

Housing completions have fallen to numbers not seen since the 1920s. Shortages have caused private sector rents to go through the roof. Foreign speculators have made things worse.

So how do we solve London’s housing problems? In 2014 the Labour Group on Barnet Council – a north London authority which includes Hendon, Golders Green and Finchley – set up a housing commission to prepare proposals for radical reform. Its report, ‘Home Truths for Barnet – Housing Challenges in an Outer London Borough’ was published last month.

Home Truths Cover for webIt concluded that co-operative and mutual housing schemes could make a valuable contribution to the London housing scene and supported their introduction.

The commission was chaired by Nicky Gavron AM from the Greater London Assembly, chair of the Greater London Authority’s planning committee. Independent housing experts, local representatives and Labour councillors also sat.

Evidence was taken at public meetings from housing experts, London Assembly members, borough councillors, academics, trade unions, specialists from the private sector, community groups and members of the public.

The commission visited other London boroughs and social housing providers. Visits were made to Wales and Leeds, and other written evidence was also considered.

The report advocates a massive increase in the availability of genuinely affordable homes in the borough as well as in Greater London. That means a big house- building programme. Half of all new homes built should be affordable, with three in ten built for social rent and two in ten built for rent to buy or shared ownership.

The report urges the government to lift the Housing Revenue Account borrowing cap. The capital housing subsidy for socially rented homes should also be restored.

For social housing, regeneration of estates must benefit the residents who live there first, and social housing rents should be set at 30% to 50% of market rates – £93 to £155 per week at current prices.

Brick by brick: new housing federation for student co-ops

In the private sector, landlords should be licensed by the council and a decent homes kitemark awarded to landlords meeting quality standards and minimum legal requirements, the commission said. The borough should establish a not-for-profit lettings agency.

On mutual and co-op housing, the commission took evidence from Cllr David Rodgers (Ealing), former CEO of CDS Co-ops, the largest secondary housing co-op in the UK; and Cllr Mick O’Sullivan [Islington], chair of the housing scrutiny committee. Cllr O’Sullivan lives in a housing co-op in Finsbury Park.

Maria Brenton, founder of Older Women’s CoHousing, told us about her scheme for older women under construction in High Barnet.

Our deputy chair, Cllr Ross Houston visited LILAC, a low-environmental-impact mutual home ownership scheme in Leeds.

In Lewisham, we heard about the RUSS [Rural Urban Synthesis Society], a self-build mutual scheme to be built in Ladywell.

Cardiff's Home Farm Village co-operative housing scheme
Cardiff’s Home Farm Village co-operative housing scheme

We also visited Wales at the invitation of the Wales Co-operative Centre where we visited several new housing co-ops at Merthyr Tydfil, Ely [Cardiff] and Newport.

The commission recommended that Barnet Council support existing co-ops and co-housing schemes and encourage more to be set up.

Together with the London Mayor, the council should help people set up new co-ops and mutuals by providing advice and model rules.

It was felt that mutual retirement housing schemes could provide specially designed homes for older people while releasing much-needed family housing for younger people.

Gellideg housing co-op in Merthyr Tydfil
Gellideg housing co-op in Merthyr Tydfil

Two forms of mutual retirement were considered. The first would use the commonhold form of tenure; here, everyone would own their own flat. A commonhold association set up by the residents would own the structure of the building, the land on which the block stood and common parts such as stairways, lifts, gardens and car parks.

Each resident would be a member of the association which would be run as a co-operative. There would be no external shareholders – and no cost to the public purse as each resident would sell their existing homes and use the money to buy into the scheme. Through joint ownership they would be able to keep service charges to a minimum.

This solution would help with loneliness and social isolation among the elderly. Participation in the management can bolster self-confidence and create companionship and a feeling of community.

For people who don’t have the resources to buy, mutual home ownership may be appropriate. Here, the housing is built on land owned by a community land trust. The CLT land will have been gifted by the local authority or other body; thus the rents should be much lower. All tenants would be members of a rental co-op and would pay two monthly payments; rent and a contribution to a joint mortgage.

The London mayoral vote is on 5 May, and Labour candidate Sadiq Khan has already committed his party to addressing London’s housing crisis

On leaving the scheme they would get a refund of part of the rise in the capital value of their homes since they have been there. No deposit would be required.

Mutual Home Ownership schemes are also suitable as intermediate housing for key workers like teachers, and nurses. MHO would also enable young people to enter the housing market, by using their refund as a deposit for their first home.

The commission also recommended tenant participation and tenant management schemes for the council’s estates. Local housing associations should be encouraged to do the same.

The recommendations were submitted to Barnet Council. Some were accepted – but Barnet is one of the few outer London boroughs still controlled by the Tories.

They have a majority of one, so if they lose one byelection Labour could take over.

Even without a byelection, the London mayoral vote is on 5 May, and Labour candidate Sadiq Khan has already committed his party to addressing London’s housing crisis.

So the people of London will have the chance to decide whether they want to improve London’s housing or stick with Tory shortages, high rents and private squalor.

  • Glyn Thomas is a member of the EC of the London Federation of Housing Co-ops and a former vice- chair of CDS Co-ops. He writes in a personal capacity. For further info visit glynthomas.org.uk
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