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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Who is the EU's chief Brexit negotiator Michel Barnier?

The former French foreign minister has shown signs that he will play hardball in negotiations.

The European Commission’s chief Brexit negotiator today set an October 2018 deadline for the terms of Britain’s divorce from the European Union to be agreed. Michel Barnier gave his first press conference since being appointed to head up what will be tough talks between the EU and UK.

Speaking in Brussels, he warned that UK-EU relations had entered “uncharted waters”. He used the conference to effectively shorten the time period for negotiations under Article 50 of the Lisbon Treaty, the legal process to take Britain out of the EU. The article sets out a two year period for a country to leave the bloc.

But Barnier, 65, warned that the period of actual negotiations would be shorter than two years and there would be less than 18 months to agree Brexit.  If the terms were set in October 2018, there would be five months for the European Parliament, European Council and UK Parliament to approve the deal before a March 2019 Brexit.

But who is the urbane Frenchman who was handpicked by Commission President Jean-Claude Juncker to steer the talks?

A centre-right career politician, Barnier is a member of the pan-EU European People’s Party, like Juncker and German Chancellor Angela Merkel.

A committed European and architect of closer eurozone banking integration, Barnier rose to prominence after being elected aged just 27 to the French National Assembly.  He is notorious in Brussels for his repeated references to the 1992 Winter Olympics he organised in Albertville with triple Olympic ski champion Jean-Claude Killy.

He first joined the French cabinet in 1993 as minister of the environment. In 1995, Jacques Chirac made him Secretary of State for European Affairs, teeing up a long and close relationship with Brussels.

Barnier has twice served as France’s European Commissioner, under the administrations of Romano Prodi and José Manuel BarrosoMost recently he was serving as an unpaid special advisor on European Defence Policy to Juncker until the former prime minister of Luxembourg made him Brexit boss.“I wanted an experienced politician for this difficult job,” Juncker said at the time of Barnier, who has supported moves towards an EU army.

 

Barnier and the Brits

Barnier’s appointment was controversial. Under Barroso, he was Internal Market commissioner. Responsible for financial services legislation at the height of the crisis, he clashed with the City of London.

During this period he was memorably described as a man who, in a hall of mirrors, would stop and check his reflection in every one.

Although his battles with London’s bankers were often exaggerated, the choice of Barnier was described as an “act of war” by some British journalists and was greeted with undisguised glee by Brussels europhiles.

Barnier moved to calm those fears today. At the press conference, he said, “I was 20 years old, a very long time ago, when I voted for the first time and it was in the French referendum on the accession of the UK to the EU.

“That time I campaigned for a yes vote. And I still think today that I made right choice.”

But Barnier, seen by some as aloof and arrogant, also showed a mischievous side.  It was reported during Theresa May’s first visit to Brussels as prime minister that he was demanding that all the Brexit talks be conducted in French.

While Barnier does speak English, he is far more comfortable talking in his native French. But the story, since denied, was seen as a snub to the notoriously monolingual Brits.

The long lens photo of a British Brexit strategy note that warned the EU team was “very French” may also have been on his mind as he took the podium in Brussels today.

Barnier asked, “In French or in English?” to laughter from the press.

He switched between English and French in his opening remarks but only answered questions in French, using translation to ensure he understood the questions.

Since his appointment Barnier has posted a series of tweets which could be seen as poking fun at Brexit. On a tour of Croatia to discuss the negotiations, he posed outside Zagreb’s Museum of Broken Relationships asking, “Guess where we are today?”

 

 

He also tweeted a picture of himself drinking prosecco after Boris Johnson sparked ridicule by telling an Italian economics minister his country would have to offer the UK tariff-free trade to sell the drink in Britain.

But Barnier can also be tough. He forced through laws to regulate every financial sector, 40 pieces of legislation in four years, when he was internal market commissioner, in the face of sustained opposition from industry and some governments.

He warned today, "Being a member of the EU comes with rights and benefits. Third countries [the UK] can never have the same rights and benefits since they are not subject to same obligations.”

On the possibility of Britain curbing free movement of EU citizens and keeping access to the single market, he was unequivocal.

“The single market and four freedoms are indivisible. Cherry-picking is not an option,” he said.

He stressed that his priority in the Brexit negotiations would be the interests of the remaining 27 member states of the European Union, not Britain.

“Unity is the strength of the EU and President Juncker and I are determined to preserve the unity and interest of the EU-27 in the Brexit negotiations.”

In a thinly veiled swipe at the British, again greeted with laughter in the press room, he told reporters, “It is much better to show solidarity than stand alone. I repeat, it is much better to show solidarity than stand alone”.

Referring to the iconic British poster that urged Brits to "Keep Calm and Carry On” during World War Two, he today told reporters, “We are ready. Keep calm and negotiate.”

But Barnier’s calm in the face of the unprecedented challenge to the EU posed by Brexit masks a cold determination to defend the European project at any cost.

James Crisp is the news editor at EurActiv, an online EU news service.