An Introduction to Social Housing Prelims.qxd 1/21/05 11:30 AM Page ii To my wife, Marlena, with all my love. Prelims.qxd 1/21/05 11:30 AM Page iii An Introduction to Social Housing Second edition PAUL REEVES MA(CANTAB) MCIH PGCE(HE) MCMI AMSTERDAM BOSTON HEIDELBERG LONDON NEW YORK OXFORD PARIS SAN DIEGO SAN FRANCISCO SINGAPORE SYDNEY TOKYO Prelims.qxd 1/21/05 11:30 AM Page iv Elsevier Butterworth-Heinemann Linacre House, Jordan Hill, Oxford OX2 8DP 30 Corporate Drive, Burlington, MA 01803 First published in 1996 by Arnold Second edition 2005 Copyright © 1996, P. Reeves; © 2005, Elsevier Ltd. All rights reserved. No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP, England. Applications for the copyright holder’s written permission to reproduce any part of this publication should be addressed to the publisher Permissions may be sought directly from Elsevier’s Science and Technology Rights Department in Oxford, UK: phone: (44) (0) 1865 843830; fax: (44) (0) 1865 853333; e-mail: [email protected]. You may also complete your request on-line via the Elsevier Science homepage (www.elsevier.com), by selecting ‘Customer Support’ and then ‘Obtaining Permissions’ ISBN 0 7506 63936 British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library For information on all Butterworth-Heinemann publications visit our website at http://bookselsevier.com Typeset by Charon Tec Pvt. Ltd, Chennai, India www.charontec.com Printed and bound in Great Britain Prelims.qxd 1/21/05 11:30 AM Page v Contents Acknowledgements vii List of figures and tables ix Introduction 1 1 Supply and demand 13 2 Housing management 47 3 Housing finance 115 4 Housing development 179 5 Summary 245 Glossary 249 Index 265 This page intentionally left blank Prelims.qxd 1/21/05 11:30 AM Page vii Acknowledgements I could not have written the second edition of An Introduc- tion to Social Housing without having worked for and lectured at a number of institutions. Each workplace and lectureship contributed a great deal to my knowledge and understand- ing of the subject, and I am indebted to them all. I would like to thank all relevant staff past and present at the following local authorities where I worked between 1982 and 2004: ● Cambridge City Council ● London Borough of Southwark ● London Borough of Greenwich ● London Borough of Richmond on Thames ● London Borough of Islington ● Association of London Government Personnel in other organisations I have worked for, and held Board positions at, have also been a source of invalu- able information and support, including: ● Fordham Research ● Tenant Participation Advisory Service ● Swale Housing Association (now AMICUS) ● Bush Housing Association ● Garden City Homes Housing Association Fellow lecturers and students at the following establish- ments should be thanked for all they have done in respond- ing to lectures and for giving constructive criticism: ● Hammersmith and West London College ● University of Westminster ● University of Greenwich ● Anglia Polytechnic University Prelims.qxd 1/21/05 11:30 AM Page viii viii Acknowledgements Above all, I could not have contemplated this work without the loving support and patience of my wife, Marlena, to whom this book is dedicated. Paul Reeves Surrey Prelims.qxd 1/21/05 11:30 AM Page ix List of figures and tables Table 1.1: Vacant dwellings by ownership 2001 – percentages of total stock, England 17 Figure 1.1: Empty homes in England 17 Table 1.2: Special requirements 20 Table 1.3: Homeless households in priority need accepted by Councils, England, to 2003 24 Figure 1.2: Homeless households in priority need accepted by Councils, England, to 2002/03 24 Table 1.4: Overcrowding in England, 2002/03 26 Table 1.5: New dwellings started, by year, United Kingdom, 1992–2002 36 Figure 1.3: Right to buy sales 1992/3–2002/03, UK 39 Table 1.6: Right to buy sales 1992/3–2002/03 39 Table 2.1: Actual and estimated household number (‘000) and size, England 51 Table 2.2: Client characteristics and housing response 65 Table 2.3: Social Housing Organisation X – roles against aims and objectives (extract) 106 Table 3.1: Entries to the HRA as prescribed by regulation 144 Table 3.2: Table of necessaries for HB 165 Figure 4.1: Council houses, Surrey 188 Figure 4.2: Council flats, Surrey 188 Prelims.qxd 1/21/05 11:30 AM Page x x List of figures and tables Figure 4.3: General needs 1930s council flats, Surrey 189 Figure 4.4: 1960s council sheltered housing scheme, Surrey 189 Figure 4.5: 1960s tower block, London 194 Figure 4.6: 1960s tower block, London 194 Figure 4.7: Deck access 1950s medium rise flats, London 195 Figure 4.8: Deck access 1960s medium rise flats, London 195 Figure 4.9: Refurbished Victorian council mansion block 200 Figure 4.10: Refurbished Victorian council mansion block 200 Figure 4.11: Council low-rise housing – regeneration area 201 Figure 4.12: Council infill, regeneration area 201 Figure 4.13: Housing Association 1990s sheltered scheme 204 Figure 4.14: Housing Association 2003 – general needs flats 204 Figure 4.15: Housing Association 2003 – sheltered housing complex 205 Figure 4.16: Housing Association leasehold scheme for the elderly under construction, 2004 205 Introduction.qxd 1/21/05 11:48 AM Page 1 Introduction The provision and management of social housing for those who are unable to access the housing market is essential to the maintenance of the fabric of society. Roughly 20 per cent of households in this country rely upon some form of subsidised housing provided by local authorities and housing associations, and many who would otherwise be homeless are housed in private sector accommodation procured by state and voluntary agencies. Yet others rely on housing benefits provided through tax receipts to help them afford the homes they rent. The social housing indus- try is vast and still growing, with an annual growth in the number of housing associations and management bodies, and is changing to adapt to new political and economic forces. There are very few countries in the world where some form of subsidised housing does not exist, and the total number of social homes is likely to grow worldwide, as are the challenges of the sector. This book is aimed at students on housing and related courses, ranging from HNC level through professional qualifications to housing and related degrees. It covers the main themes in the field, giving a broad overview as well as detailed case studies exemplifying housing policy and prac- tice in a mainly UK and specifically English context, although drawing on best practice elsewhere, where alternative non-UK Introduction.qxd 1/21/05 11:48 AM Page 2 2 An Introduction to Social Housing approaches are thought to be appropriate to the issues explored. It is also meant for housing professionals at all levels who desire a broader overview of the subject than may be gained through working in a specific part of, or function in, the sector. The overall aim is to enhance understanding of the key themes in social housing, so as to increase the effectiveness of housing management, and so the quality of life of those who depend on the sector for a roof. It is hoped that it may motivate some to consider or implement positive changes, which will move housing policy and prac- tice forward, in an uncertain and developing social and eco- nomic environment where change is a constant. Social housing is a phrase which has only really gained currency over the last fifteen years or so, and it is not with- out its critics, both as an expression and as a concept. In this book, it is taken to mean housing provided by local authorities and housing associations (sometimes known as Registered Social Landlords, although there is not an exact equivalence), and extended to cover housing managed by these bodies, regardless of ownership. The key feature which defines the essence of the products and services provided by all social housing providers is that these activities and products are non-market, in that they cannot be obtained by bidding with cash or other financial resources in com- petition, and that the products are allocated principally on the basis of housing need rather than effective demand, although there has been some blurring of the boundary with the increased prominence of low-cost home owner- ship in general and shared ownership housing in particular. Social housing bodies can be direct providers of housing – such as when a housing association develops and manages property, or enablers – where a body helps its clients or customers to find housing through another agency, for example, where a local authority (that is, a council) makes a cash grant to a housing association to build housing, or works through the planning system to enable land for social housing development. Another example of enabling is where a council contracts out the management of its homes to another party. The largest housing enabler is the government, which makes cash help available to back council housing management and maintenance activities, Introduction.qxd 1/21/05 11:48 AM Page 3 Introduction 3 and gives permission to councils to raise money to do major regeneration or improvement schemes.