As we draw closer to the government’s spending review, the pressure is mounting for Rachel Reeves to follow through on her promises of economic growth. The Labour government has talked a big game across a number of key areas, especially within the economy and housing, and has a long road ahead if it wants to follow through on it’s lofty targets.
Housing in particular is a key area of focus from the government. The state of housing in the UK has spiraled over recent years due to a number of factors including escalating private rent and dwindling social homes, which have compounded to create the housing crisis we see today. Housing is fundamental to living a stable, healthy life, and the knock on effects of the housing crisis have an influence on health costs, employment rates and almost every facet of society. In order to facilitate economic growth and bring about the positive changes needed, Labour need to ensure the upcoming spending review hits the right areas, and lends social housing the vital support it needs.
Rayner calls for further social housing support
Within the new government, Angela Rayner has been one of the most vocal voices in the key role social housing must play in solving the housing crisis. Once a social housing tenant, the Secretary of State for Housing, Communities and Local Government has been outspoken in her advocacy for increased social housing, a trend that has no signs of slowing down. Rayner in particular has been pushing Reeves for further funding to be announced in the upcoming review, although as of yet there is no sign that the Chancellor of the Exchequer has confirmed the funding.
A number of voices from homeless charities such as Shelter and Crisis to housing associations up and down the country have echoed Rayner’s statements for some time, pointing to the continuous underfunding of the social housing sector as a key cause of the housing crisis. Since the introduction of the Right-To-Buy scheme, the number of social homes in England and the UK have continued to fall, all whilst turbulent economic conditions have priced more and more working people out of the private sector. In order to provide homes for the most vulnerable in society and turn the tide against rising levels of homelessness, social housing in particular will need to see a significant boost in funding in June.
Prevention rather than reaction
On the topic of homelessness, the Institute for Government and Centre for Homelessness Impact was the latest in the list of names calling for reform on the government’s approach to those who have already lost out on housing. In a recent report, the two bodies presented research calling for the spending review to be used as an opportunity to divert more funding towards early intervention and prevention, rather than the current reactionary-heavy model. This is a system that has been seen to find success in other countries around the world, where education and thorough early support is used to ensure families don’t reach the point of homelessness in the first place.
Of course, given the countries current difficulties this change is easier said than done. The fact is that the number of families plunged into homelessness already is sky high, and funding channeled towards prevention will do little to help house those who are already in need today. However, there is much evidence that points towards the long-term benefits of preventative measures, such as reduced health and temporary accommodation costs.
Regeneration fund
The Northern Housing Consortium has also advocated for support in the upcoming review, in particular for the regeneration of homes currently not meeting the Decent Homes Standard. A recent report highlighted the fact that in the North nearly 1.2m homes fail to meet the Decent Homes Standard, equating to 33.8% of all substandard homes in England.
The consortium’s recommendations for the review put forward two key ideas. The first was that the next round of the Affordable Homes Programme (AHP) should permit up to 30% of funding to support the replacement, refurbishment, and acquisition of homes as part of wider regeneration scheme, as well as an overall 1.37bn regeneration fund, a five-year, devolved regeneration fund to assist mayors in demolition and replacement of properties no longer fit for purpose, refurbishing properties to improve quality and energy efficiency and other regeneration efforts.
These are just a few examples of the support the sector needs in order to fulfill the vital role of restoring stability to the UK housing sector. Although fighting the housing crisis is pivotal in stabilising our economy and the county, the government heads into this spending review facing a financial situation that is typically perilous. Whilst this is true, it is also evident that urgent actions are needed if we want to ensure that citizens in the UK have reliable access to safe, affordable housing, and if Labour want to follow through on their ambitious promises of solving the housing crisis, the spending review needs to serve as a mission statement to do just that.
