Social housing ‘polarising deprivation’
Social housing is polarising British society, concentrating “worklessness and deprivation” is certain areas, a committee of MPs has said.
In a report released today, the Communities and Local Government committee also said the UK needs 50,000 more rented properties annually in order to meet demand.
The report – The Supply of Rented Housing – also finds more emphasis needs to be put on creating mixed communities, in order that the most vulnerable households are not concentrated in areas of deprivation.
“We were particularly struck that the shortage of social housing and the allocation schemes can often have the negative consequences of polarising worklessness and deprivation within an area,” explained Dr Phyllis Starkey, chair of the report.
“New social rented housing must be built to encourage mixed communities. We also want to see much more flexibility in the allocation schemes so that tenants making a genuine attempt to seek work can move more easily.”
In the social rented sector, the report finds too many flats have been built when what is needed to reduce overcrowding is family accommodation.
Furthermore, the committee argues there should be a more strategic approach to the right-to-buy policy so restrictions on sales can be imposed where necessary.
In response, the committee recommends the system used in the Netherlands, where housing providers and local authorities agree on the volume of houses to be sold within neighbourhoods.
Finally the committee recommends the ability to go from one social rented home to another should be made easier so tenants can move more easily around the country in pursuit of, among other things, employment and more suitable sized housing.
In the private sector the issue is less about quantity and more about quality, with substantial numbers of people living in poorly managed and maintained homes.
While acknowledging the buy-to-let sector has improved supply to the sector, the report notes the surprise at the extent of the buy-to-let phenomenon in some areas.
For example in London around two thirds of new build properties in 2005 were bought by investors rather than owner-occupiers.
Again the committee would like to see tax measures to discourage property owners from leaving properties empty for long periods, in order to bolster supply.
Better regulation of the private rented sector is also required to improve standards.
The committee found a minority of landlords are not fulfilling their obligations to provide tenants with a decent home. Again, it recommended the introduction of a system of accrediting landlords and letting agents enforced by the local authority.
The Association of Residential Letting Agents (ARLA) has welcomed the report, noting the development of buy-to-let investors, as opposed to institutional investors, as the driving force of the sector.
“It is they who have been largely responsible for growth in the private rented sector, for the stable rent levels and for renting becoming socially acceptable once again,” said Ian Potter, head of operations for ARLA.
“We have to hope that the credit crunch will not damage this process. The private rented sector needs more investment.”
