'Social housing should not be more expensive than affordable housing'

There is a growing group of people who cannot afford accommodation in the private rented sector

A couple of years ago, we used to talk about the role of open market products purely as a means to an end – that is, to cross-subsidise social activities. But now, many housing associations also see it as a legitimate end in itself. And this is quite consistent with the sector’s overarching ethos to tackle the housing need of the moment. Low-middle income earners are a group who are continuing to struggle due to the rising cost of living, and I think it’s right that we are there to help with suitable products (eg shared ownership or even open market).

- Angelo Sommariva, public affairs and policy manager, Moat

What are some of the problems with current policy?

One of our biggest gripes with current policy is that the benefits cap is not indexed for inflation. This means that a family who can afford 80% today may quickly find it unaffordable tomorrow.

There is nothing to fear from greater levels of efficiency. Unless it begins to affect our social purpose. Thankfully, we haven’t seen a great deal of evidence of housing associations walking away from their social ethos.

- Angelo Sommariva

Affordable housing requires a broader approach

Most people who don’t work have a strong desire to do so. The more opportunities we can find and the more support we can give them, the stronger the communities will be. If the scheme balance is right in terms of unit sizes, and it’s mixed tenure, it is possible to create successful environments. But it does require a broader approach and partnership working.

- John Baldwin, housing and neighbourhood services director, Thames Valley Housing Association

Housing associations should have a focus on meeting the needs of the poorest

Housing providers now produce almost no social rented homes. Everything is either unaffordable ‘affordable rent’ or shared ownership or market rents. None of these are suitable for people on low incomes. Most of the poor are now in employment, and many employed people will be dependent on benefits due to their low incomes and high rents. The ‘benefits to bricks’ argument is the key one - we must subsidise investment in new homes and not pay through the nose forever to subsidise high rents. Then landlords might be able to house a wider range of people.

- Steve Hilditch, chair, London Labour Housing Group

Affordable housing must be flexible

A person looking for a home should have greater choice over where they live and the opportunities on offer. And this has to be part of a holistic deal around employment and financial capability and forward mobility. This must link to health and social care. We cannot have a silo mentality. Affordability should be based on the person and the means they have. Services should be wrapped around this person based upon what they require and what they don’t. This should be reviewed – annually.

- Paul Taylor, innovation coach, Bromford Housing Association

There are advantages to not being grant-dependent

The more we build for market sale to help build affordable homes, then the more power we have to set rent levels that are appropriate to the means of the people who need the homes.

Those who hope for a new government bringing back grants in a big way are going to be disappointed. Public debt is going to continue to rise over the next five years and NHS and education will always trump housing. This demands that we take new approaches to build more affordable homes if we are to meet our social purpose.

- Mick Sweeney, group chief executive, One Housing Group

Social housing should be for all those who need it

Over the past 150 years the sector has provided safe, secure and affordable homes for millions of families who had often been living in overcrowded, insecure and unsanitary conditions. Private house builders are saying that Ed Miliband’s modest target of 200,000 a year is impossible to achieve, so there is an essential role for the public sector, including housing associations, to fill the gap. We need a return to the post-war consensus on housing, and to see social rented housing being put at the heart of future housing policy.

- Colin Wiles, consultant and founder, Social Housing Under Threat

We are seeing a move from supply-side subsidy (grant) towards demand subsidy (housing benefit)

The logic of this for government is that housing benefit is in theory relatively easy to control and to target according to income and need. It can be used to move towards a situation where there is no differentiated “affordable housing”, there is simply housing and some people receive a subsidy to access it.

The problem in the UK is that housing markets have proved pretty unresponsive to demand-side subsidy in terms of stimulating new supply over many years. There is a strong risk of fostering permanent partial benefit dependency for those in work.

- Andrew Heywood, housing consultant, editor, Housing Finance International

Housing needs to be seen as a fundamental need

Homes should be seen as that - a home, not simply an investment. A lot of the people I speak to are struggling with affordability because they are victims of the low wage economy - lots of people are working hard to make ends meet but the high cost of living is a real issue for them.

We need more homes for rent - we don’t need to classify them - just build and manage homes people can afford to live in with comfort and dignity. We should ask people now: where are your grand children going to live in the future and what will they be able to afford?

- Charlie Norman, chief executive, St Vincent’s Housing Association

Social housing should not be more affordable than affordable housing

This strikes me as being the wrong way round. For instance, my son is looking for a job, if he got one in London (assuming he could even find a house available) on a starting salary he could not afford either affordable or social rent ... hence the need for the flexible models that the Home Group and New Economics Foundation have been advocating.

- Mark Henderson, group chief executive, Home Group

Housing providers need to create a balance

Social Housing (post-war) used to be about providing homes for those in ‘housing need’ - which included a wide range of people in a variety of circumstances. It is only in more recent times that this has translated in to the perception of provision of social homes to only those with the greatest socio-economic need. This method of allocation is almost inevitable as the availability of social units become scarcer. The key issue is keeping the rent affordable for people’s situation and ensuring surpluses go back in to supporting social housing.

- Paul Parkinson, executive director, Futures Housing Group

Read the entire online discussion on who affordable housing is for here