Further and further out of reach. Photo: Getty Images
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The root cause of London's housing crisis: we don't build enough houses

Far from fixing the underlying problem, the Conservatives' mucking around with demand-side issues will only make things worse.

Elizabeth is in her early thirties. In January, after more than a decade living in London, she decided it was time to leave. 

The staggering rise in the cost of renting – up by around £3,000 a year for the average London property since 2010 – has left many of those, like Elizabeth, without a foot on the property ladder considering whether it makes sense to stay here. Meanwhile, increasing house prices have essentially guaranteed that very few of those who do stay will get the opportunity to buy.

Rising costs are perhaps the defining issue, but they are far from the only problem facing London’s housing stock, with inexcusably high levels of overcrowding, homelessness, dire property standards and rogue landlords on the rise.

Yet, these seemingly disparate problems have a common thread; we simply haven’t built enough homes in London. For Elizabeth, this has meant unpalatably high rents. For Emma – who contacted me because her landlord consistently failed to fix a chronic damp problem that led to her son developing asthma – this means increasingly few options to escape the type of negligent landlord to whom she and her husband pay large sums of rent every month.

This raises a fundamental question: Does the proposal to extend Right to Buy to housing associations do anything to solve the extensive problems we have with London’s housing stock?

The National Housing Federation estimates the policy could cost UK taxpayers as much as £12billion if all eligible and able housing association tenants took up their new right. £2billion of this would be required in Greater London. Alternatively, this would be enough to fund the construction of more than 66,000 much needed affordable homes, many of which would be for first-time buyers.

But the implications for housing supply run much deeper than government spending. This is a policy which facilitates state-sanctioned asset stripping of housing associations (many of which are charities), undermining their ability to borrow for new house building. The result could be fewer homes, higher prices and a deepening housing crisis – it is the antithesis of what London should be aspiring to.

There is a double injustice in the proposals though, with plans to fund it by forcing councils to sell their most expensive homes when they become available for re-let. Analysis of the proposals show that this could result in the forced sale of every council home that becomes available in the City of Westminster. The parallels with Shirley Porter are stark, and the implications for London’s mixed and balanced communities dire.

Even then, it is difficult to see how the funding will stack up. The £4.5billion that the Conservative manifesto estimated would be raised through local authority housing sales has been pledged to three different items – the cost of the extra Right to Buy discounts, building replacement homes for those that are sold, and funding a new £1billion ‘Brownfield Regeneration Fund’. Compare this with the NHF estimate that discounts alone could cost up to £12billion and the figures just don’t add up.

Many Londoners will understandably have trouble believing the government will fulfil their pledge to replace all sold homes. The previous Government promised the same in April 2012 when announcing the reinvigoration of Right to Buy. But since then 4,017 council homes have been sold in Greater London and only 1,530 started, and this without the additional pressures of compensating housing associations and funding an additional £1billion programme.

The fact is that we can only fundamentally tackle London’s housing crisis by building more homes, and we need to do so urgently. We can see that the personal dilemma faced by Elizabeth is shared by thousands of other Londoners and that the city’s public services and economic competitiveness are increasingly undermined by this crisis.

Yet, it would be difficult to devise a housing policy that is as carefree with the public finances but as socially damaging as the proposal to extend Right to Buy to housing associations.

Ask yourself this question: If you suddenly found £12billion that you were willing to spend on a housing policy, would you use it in a way that delivers fewer homes, makes it harder for most to get on the property ladder and increases the difficulty of tackling homelessness? I wouldn’t. I don’t think the Government should either.

 

Tom Copley AM is the Labour London Assembly Housing Spokesperson and a Londonwide Assembly Member

 

Tom Copley is a Labour member of the London Assembly

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School funding: the £3bn problem creeping up on Theresa May

Parents are starting to notice the consequence of schools funding changes. And they're not happy. 

As speculation grew last Tuesday morning that Theresa May would imminently call a snap general election, Kevin Courtney, the general secretary of the National Union of Teachers, was furiously re-writing the speech he was due to deliver at the union’s conference at noon.

The resulting changes included a pledge to put school funding “at the centre” of the union’s campaigning in the run-up to 8 June. Alongside a call to arms for teachers, he also wrote a message for parents.

“I am talking to the activists in this hall, but I have a wider audience in mind,” Courtney told teachers in Cardiff.

He was, he said, also addressing the “hundreds of thousands of teachers who aren’t here and the millions of parents and children currently engaged in our schools and colleges” and who were ready to mobilise against funding cuts. 

Tapping up angry parents as a campaign resource is nothing new. But the growing disquiet among the wider public as the school funding crisis reaches breaking point means the parents’ voices are now a particularly powerful tool. One the government could do without in the run-up to polling day.

The figures are stark – the Institute for Fiscal Studies says real-terms spending is set to fall by 6.5 per cent by 2020 – that’s the steepest cut in school funds since the 1990s.

Schools must find savings of £3bn by 2019-20, according to the National Audit Office. That’s the average salary of around 100,000 teachers.

The schoolcuts.org.uk website - put together by the unions using government data – shows that 99 per cent of schools will have per-pupil funding cut, and there are concerns the final version of the government’s upcoming new formula for handing out cash to schools will hit those in cities even harder than first thought.

But it is the plight of individual schools that is really getting through to parents. School leaders are increasingly having to ask them for donations, while the curriculum on offer to their children narrows, with creative subjects often the first to go because they do not count towards the government’s accountability measures.

Support services are being cut too. - Stuart McLaughlin, from Bower Park Academy, told the education select committee that he faced having to axe support staff roles, including those of the school’s counsellor and first aid officer. These are things that parents notice.

The impact of the government’s decision not to protect school funding in the face of rising costs from salary increases, pension and national insurance rises and other pressures such as the apprenticeship levy is now very visible on the ground, and parents are increasingly worried.

To an organisation like the NUT, the maths is simple. Its 300,000+ members can shout pretty loudly, but millions of parents can shout louder. With the unions facing a battle on two fronts – grammar schools and funding – they are going to need all the help they can get.

This is why groups like Fair Funding for All Schools are increasingly important. While the complaints of teachers and union members are often – wrongly – dismissed as scaremongering, parents make up a huge chunk of the electorate, and were already starting to organise before an election was even announced.

Jo Yurky, a mum of two from Haringey and founder of Fair Funding for All Schools, told the NUT conference last week that she was confused when she heard the head of her local secondary talk about needing to increase class sizes. She thought funding was protected, and had believed the government when it said it was spending a record amount on schools.

“Teachers and head teachers are trusted by parents – we leave our children in their care each day,” Yurky told teachers.

“They are speaking out publicly about their concerns out of desperation, because they are so worried about the financial situation in our schools. When headteachers speak, parents listen.”

Education funding is also a key campaign issue for Labour. Jeremy Corbyn has accused Theresa May’s government of breaking the 2015 manifesto commitment to protect the money following pupils into schools.

John McDonnell, the shadow chancellor, pledged last week to restore the role of the Local Education Authority and “fully-fund” schools, although the party will now have to explain in detail what this means in its upcoming manifesto (and where the money will come from).

However, this isn’t a partisan issue. Tory MPs Michael Fabricant, Tom Tugendhat, Maria Caulfield and James Duddridge are among those to have spoken out in parliament about cuts faced by schools in their constituencies under the proposed new school funding formula.

The government wasn’t due to publish its final funding plans until the summer anyway, but has rejected calls for it to bring the announcement forward to better inform voters, blaming pre-election purdah rules.

It is admirable to move cash around the system so it is more equitable for people in different places, but without injecting extra cash, ministers are simply moving inadequate levels of funding around, and children will lose out in the end.

It is no longer acceptable to parents, teachers, school leaders and children for the government to peddle its line that there is record funding going into schools. There are also record numbers of pupils in the system, so you’d hope that this would be the case.

Urgent action is needed to properly equip schools for the additional cost pressures they face, and if this doesn’t happen soon, Theresa May is going to see a lot more than just a few union activists attempting to block her road back to Downing Street.

 

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