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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Erdogan’s purge was too big and too organised to be a mere reaction to the failed coup

There is a specific word for the melancholy of Istanbul. The city is suffering a mighty bout of something like hüzün at the moment. 

Even at the worst of times Istanbul is a beautiful city, and the Bosphorus is a remarkable stretch of sea. Turks get very irritated if you call it a river. They are right. The Bosphorus has a life and energy that a river could never equal. Spend five minutes watching the Bosphorus and you can understand why Orhan Pamuk, Turkey’s Nobel laureate for literature, became fixated by it as he grew up, tracking the movements of the ocean-going vessels, the warships and the freighters as they steamed between Asia and Europe.

I went to an Ottoman palace on the Asian side of the Bosphorus, waiting to interview the former prime minister Ahmet Davu­toglu. He was pushed out of office two months ago by President Recep Tayyip Erdogan when he appeared to be too wedded to the clauses in the Turkish constitution which say that the prime minister is the head of government and the president is a ceremonial head of state. Erdogan was happy with that when he was prime minister. But now he’s president, he wants to change the constitution. If Erdogan can win the vote in parliament he will, in effect, be rubber-stamping the reality he has created since he became president. In the days since the attempted coup, no one has had any doubt about who is the power in the land.

 

City of melancholy

The view from the Ottoman palace was magnificent. Beneath a luscious, pine-shaded garden an oil tanker plied its way towards the Black Sea. Small ferries dodged across the sea lanes. It was not, I hasten to add, Davutoglu’s private residence. It had just been borrowed, for the backdrop. But it reminded a Turkish friend of something she had heard once from the AKP, Erdogan’s ruling party: that they would not rest until they were living in the apartments with balconies and gardens overlooking the Bosphorus that had always been the preserve of the secular elite they wanted to replace.

Pamuk also writes about hüzün, the melancholy that afflicts the citizens of Istanbul. It comes, he says, from the city’s history and its decline, the foghorns on the Bosphorus, from tumbledown walls that have been ruins since the fall of the Byzantine empire, unemployed men in tea houses, covered women waiting for buses that never come, pelting rain and dark evenings: the city’s whole fabric and all the lives within it. “My starting point,” Pamuk wrote, “was the emotion that a child might feel while looking through a steamy window.”

Istanbul is suffering a mighty bout of something like hüzün at the moment. In Pamuk’s work the citizens of Istanbul take a perverse pride in hüzün. No one in Istanbul, or elsewhere in Turkey, can draw comfort from what is happening now. Erdogan’s opponents wonder what kind of future they can have in his Turkey. I think I sensed it, too, in the triumphalist crowds of Erdogan supporters that have been gathering day after day since the coup was defeated.

 

Down with the generals

Erdogan’s opponents are not downcast because the coup failed; a big reason why it did was that it had no public support. Turks know way too much about the authoritarian ways of military rule to want it back. The melancholy is because Erdogan is using the coup to entrench himself even more deeply in power. The purge looks too far-reaching, too organised and too big to have been a quick reaction to the attempt on his power. Instead it seems to be a plan that was waiting to be used.

Turkey is a deeply unhappy country. It is hard to imagine now, but when the Arab uprisings happened in 2011 it seemed to be a model for the Middle East. It had elections and an economy that worked and grew. When I asked Davutoglu around that time whether there would be a new Ottoman sphere of influence for the 21st century, he smiled modestly, denied any such ambition and went on to explain that the 2011 uprisings were the true succession to the Ottoman empire. A century of European, and then American, domination was ending. It had been a false start in Middle Eastern history. Now it was back on track. The people of the region were deciding their futures, and perhaps Turkey would have a role, almost like a big brother.

Turkey’s position – straddling east and west, facing Europe and Asia – is the key to its history and its future. It could be, should be, a rock of stability in a desperately un­stable part of the world. But it isn’t, and that is a problem for all of us.

 

Contagion of war

The coup did not come out of a clear sky. Turkey was in deep crisis before the attempt was made. Part of the problem has come from Erdogan’s divisive policies. He has led the AKP to successive election victories since it first won in 2002. But the policies of his governments have not been inclusive. As long as his supporters are happy, the president seems unconcerned about the resentment and opposition he is generating on the other side of politics.

Perhaps that was inevitable. His mission, as a political Islamist, was to change the country, to end the power of secular elites, including the army, which had been dominant since Mustafa Kemal Atatürk created modern Turkey after the collapse of the Ottoman empire. And there is also the influence of chaos and war in the Middle East. Turkey has borders with Iraq and Syria, and is deeply involved in their wars. The borders do not stop the contagion of violence. Hundreds of people have died in the past year in bomb attacks in Turkish cities, some carried out by the jihadists of so-called Islamic State, and some sent by Kurdish separatists working under the PKK.

It is a horrible mix. Erdogan might be able to deal with it better if he had used the attempted coup to try to unite Turkey. All the parliamentary parties condemned it. But instead, he has turned the power of the state against his opponents. More rough times lie ahead.

Jeremy Bowen is the BBC’s Middle East editor. He tweets @bowenbbc

This article first appeared in the 28 July 2016 issue of the New Statesman, Summer Double Issue