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.

Photo: Getty
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Why is Marine Le Pen getting more popular?

The latest French polls have people panicked. Here's what's going on. 

In my morning memo today, I wrote that Emmanuel Macron, who is campaigning in London today – the French émigré population makes it an electoral prize in of itself – was in a good position, but was vulnerable, as many of his voters were “on holiday” from the centre-left Socialist Party and the centre-right Republican Party, and he is a relatively new politician, meaning that his potential for dangerous gaffes should not be ruled out.

Now two polls show him slipping. Elabe puts him third, as does Opinionway. More worryingly, Marine Le Pen, the fascist Presidential candidate, is extending her first round lead with Elabe, by two points. Elabe has Le Pen top of the heap with 28 per cent, Republican candidate François Fillon second with 21 per cent, and Macron third with 18.5 per cent. Opinionway has Le Pen down one point to 26 per cent, and Macron and Fillon tied on 21 per cent.
(Under the rules of France’s electoral system, unless one candidate reaches more than half of the vote in the first round, the top two go through to a run-off. All the polls show that Marine Le Pen will top the first round, and have since 2013, before losing heavily in the second. That’s also been the pattern, for the most part, in regional and parliamentary elections.)

What’s going on? Two forces are at play. The first is the specific slippage in Macron’s numbers. Macron ended up in a row last week after becoming the first presidential candidate to describe France’s colonisation of Algeria as a “crime against humanity”, which has hurt him, resulting in a migration of voters back to the main centre-right candidate, François Fillon, which is why he is back in third place, behind Le Pen and Fillon.

Le Pen has been boosted by a bout of rioting following the brutal arrest of a 22-year-old black man who was sodomised with a police baton.

As I’ve written before, Le Pen’s best hope is that she faces a second round against the scandal-ridden Fillon, who is under fire for employing his wife and children in his parliamentary office, despite the fact there is no evidence of them doing any work at all. She would likely still lose – but an eruption of disorder on the streets or a terrorist attack could help her edge it, just about. (That’s also true if she faced Macron, so far the only other candidate who has come close to making it into the second round in the polling.)

For those hoping that Macron can make it in and prevent the French presidency swinging to the right, there is some good news: tomorrow is Wednesday. Why does that matter? Because Le Canard Enchaîné, the French equivalent of Private Eye which has been leading the investigation into Fillon is out. We’ve known throughout the election that what is good for Fillon is bad for Macron, and vice versa. Macron’s Algeria gaffe has helped Fillon – now Macron must hope that Fillon’s scandal-ridden past has more gifts to give him. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.