Co-operative housing could be the answer to Britain's troubles

In the face of cuts and a decline in home ownership, co-ops could help people into the market.

Co-op Housing is described as “Britain’s best kept secret”. Between cuts to social housing and a decline in home ownership, could now be the time for Britain to look to co-operative housing?

In Sweden, co-op housing provides more than one fifth of housing. That’s more than the UK private rental market. Starting in 1945, the Swedish government began to subsidise co-operative housing at the same level as other housing types. The tenant movement, forged in struggles against rent rises in the 1920s and 1930s took full advantage of this development. HSB, one of the largest housing co-ops, was founded as part of the tenants movement in 1923. Other organisations, such as the housing co-op Riksbyggen, were founded after 1945. True to much of the Swedish model of public services, the co-ops were price controlled until 1973 and subsidised until 1990, gradually being built up before being exposed to market forces.

By contrast, the UK has a much smaller co-op sector. Often associated with radical and alternative politics, some of these schemes are truly inspirational but need scaling up. Giroscope, a worker co-operative started by radicals in Hull pooling their giro cheques, has an impressive record of providing housing and jobs. Starting from nothing, they bought derelict property, renovated it, and then rented it out. It provides housing to people who are excluded from private renting, and provides opportunities to the long-term unemployed and ex-offenders managing the co-op and renovating the stock. In turn, Canopy and Latch in Leeds have been founded along similar lines, and a website, Self-help housing, started up.

Different  and larger models of co-ops are also now being developed. In East London, a scheme which could house 1,000 people through a Community Land Trust was approved in February this year. It is through a combination of Community Land Trusts, Cohousing schemes, traditional co-ops that Britain could address its housing needs.

Nic Bliss, Chair of the Confederation of Co-operative Housing (CCH) says that interest in co-operative housing since the start of the recession has been “considerable”. Interest is coming from people who would have been first time buyers a few years ago, and from those seeking co-operative retirement housing.

The credit crunch and subsequent recession have put traditional home ownership out of reach for many people. In particular, young people are going to find it increasingly difficult to afford buying a house. The Halifax discovered just over a year ago that only 5 per cent of 22 – 45 year olds had the finances to save for buying a house, they termed this new class ‘Generation Rent’.  The previous 30 years of prioritising home ownership has been roundly criticised by the Chartered Institute of Housing who said "The Love Affair of owner-occupation is over", the National Housing Federation, whose CEO said: “We have used it [home ownership] as the policy determinant and that's absolutely wrong", and the Joseph Rowntree Foundation (JRF). The JRF’s research concluded that prioritising on home ownership had resulted in four housing bubbles in 40 years, skyrocketing prices, a rise in social exclusion caused by repossession and arrears, a poor safety net, and insecurity in housing.

What could co-op housing bring to the UK? The Bringing Democracy Home report concludes that the benefits are:

‘a) tenant satisfaction is far higher than any equivalent form of housing

(b) co-ops tend to perform as well as if not better than other housing providers in relation to business criteria

(c) there are considerable social and community benefits in co-operative housing

(d) there are individual benefits for the people involved in co-operative housing.’

Unlike Sweden, the UK is still far behind in providing the type of financial support to develop co-operative housing on a large scale. The Chartered Institute of Housing calculated that home ownership is subsidised by £6bn subsidy through Capital Gains Tax relief. Shared ownership is subsidised by £1.6bn, and housing benefit in private renting was estimated at £7bn. However, that could be about to change.

The Confederation of Co-operative Housing has been working on trying to find ways to generate the elusive finance needed by co-ops. They are currently working with the Homes and Communities Agency to try and raise finance of “between £100m to £250m” for community-led housing projects according to Nic Bliss.

At its best, co-op housing could offer a means to address the housing crisis, tackle unemployment, and balance out the housing market.

 

Housing. Photograph: Getty Images

Samir Jeraj was a Green Party Councillor from 2008-2012. He has an MA in Development Studies from the University of East Anglia and a BA in History with Economics from the University of York. His current focus is writing on issues in private rented housing.

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Is defeat in Stoke the beginning of the end for Paul Nuttall?

The Ukip leader was his party's unity candidate. But after his defeat in Stoke, the old divisions are beginning to show again

In a speech to Ukip’s spring conference in Bolton on February 17, the party’s once and probably future leader Nigel Farage laid down the gauntlet for his successor, Paul Nuttall. Stoke’s by-election was “fundamental” to the future of the party – and Nuttall had to win.
 
One week on, Nuttall has failed that test miserably and thrown the fundamental questions hanging over Ukip’s future into harsh relief. 

For all his bullish talk of supplanting Labour in its industrial heartlands, the Ukip leader only managed to increase the party’s vote share by 2.2 percentage points on 2015. This paltry increase came despite Stoke’s 70 per cent Brexit majority, and a media narrative that was, until the revelations around Nuttall and Hillsborough, talking the party’s chances up.
 
So what now for Nuttall? There is, for the time being, little chance of him resigning – and, in truth, few inside Ukip expected him to win. Nuttall was relying on two well-rehearsed lines as get-out-of-jail free cards very early on in the campaign. 

The first was that the seat was a lowly 72 on Ukip’s target list. The second was that he had been leader of party whose image had been tarnished by infighting both figurative and literal for all of 12 weeks – the real work of his project had yet to begin. 

The chances of that project ever succeeding were modest at the very best. After yesterday’s defeat, it looks even more unlikely. Nuttall had originally stated his intention to run in the likely by-election in Leigh, Greater Manchester, when Andy Burnham wins the Greater Manchester metro mayoralty as is expected in May (Wigan, the borough of which Leigh is part, voted 64 per cent for Brexit).

If he goes ahead and stands – which he may well do – he will have to overturn a Labour majority of over 14,000. That, even before the unedifying row over the veracity of his Hillsborough recollections, was always going to be a big challenge. If he goes for it and loses, his leadership – predicated as it is on his supposed ability to win votes in the north - will be dead in the water. 

Nuttall is not entirely to blame, but he is a big part of Ukip’s problem. I visited Stoke the day before The Guardian published its initial report on Nuttall’s Hillsborough claims, and even then Nuttall’s campaign manager admitted that he was unlikely to convince the “hard core” of Conservative voters to back him. 

There are manifold reasons for this, but chief among them is that Nuttall, despite his newfound love of tweed, is no Nigel Farage. Not only does he lack his name recognition and box office appeal, but the sad truth is that the Tory voters Ukip need to attract are much less likely to vote for a party led by a Scouser whose platform consists of reassuring working-class voters their NHS and benefits are safe.
 
It is Farage and his allies – most notably the party’s main donor Arron Banks – who hold the most power over Nuttall’s future. Banks, who Nuttall publicly disowned as a non-member after he said he was “sick to death” of people “milking” the Hillsborough disaster, said on the eve of the Stoke poll that Ukip had to “remain radical” if it wanted to keep receiving his money. Farage himself has said the party’s campaign ought to have been “clearer” on immigration. 

Senior party figures are already briefing against Nuttall and his team in the Telegraph, whose proprietors are chummy with the beer-swilling Farage-Banks axis. They deride him for his efforts to turn Ukip into “NiceKip” or “Nukip” in order to appeal to more women voters, and for the heavy-handedness of his pitch to Labour voters (“There were times when I wondered whether I’ve got a purple rosette or a red one on”, one told the paper). 

It is Nuttall’s policy advisers - the anti-Farage awkward squad of Suzanne Evans, MEP Patrick O’Flynn (who famously branded Farage "snarling, thin-skinned and aggressive") and former leadership candidate Lisa Duffy – come in for the harshest criticism. Herein lies the leader's almost impossible task. Despite having pitched to members as a unity candidate, the two sides’ visions for Ukip are irreconcilable – one urges him to emulate Trump (who Nuttall says he would not have voted for), and the other urges a more moderate tack. 

Endorsing his leader on Question Time last night, Ukip’s sole MP Douglas Carswell blamed the legacy of the party’s Tea Party-inspired 2015 general election campaign, which saw Farage complain about foreigners with HIV using the NHS in ITV’s leaders debate, for the party’s poor performance in Stoke. Others, such as MEP Bill Etheridge, say precisely the opposite – that Nuttall must be more like Farage. 

Neither side has yet called for Nuttall’s head. He insists he is “not going anywhere”. With his febrile party no stranger to abortive coup and counter-coup, he is unlikely to be the one who has the final say.