Social Housing Annual Conference: Rayner urges ‘step up’ on delivery and reveals rent convergence ask

Rent convergence

 

In an audience Q&A following her speech, facilitated by Nick Watt, the conference chair and political editor at BBC Newsnight, Ms Rayner also revealed that she was pushing the Cabinet for rent convergence, among a range of measures needed to deliver her housebuilding target. She emphasised that this would be needed in addition to a settlement at the Consumer Price Index (CPI) plus one per cent. 

 

Rent convergence is a principle for ensuring that social housing tenants in similar properties within an area should pay similar rents, and was previously in place for 15 years until 2015. Many sector actors have called for the reintroduction of the measure as part of a new rent settlement. Analysis for the G15 (by Hyde), for example, shows that more than half (57 per cent) of social homes managed by the London group’s members have now diverged from formula rent. On an annual basis, it calculates that G15 landlords are missing out on between £5.3m and £52.9m in rent alone.

 

The government confirmed in the Autumn Statement that it would bring in a rent settlement of “at least” five years at CPI plus one per cent, while a consultation that includes longer-term options, such as a 10-year settlement, is under way.

 

Noting that delivering the 1.5 million homes target was “on [her] head”, Ms Rayner said that she had been clear with the Cabinet about the package of measures that would be required to achieve this.

 

“It’s not like a ‘pick and mix’ – you know like you do bidding normally and they say, ‘well, you can have your rent convergence, but you’re not having your CPI plus one’. [I’m saying to cabinet] no, no, you don’t understand: this is not me doing an opening gambit, and then you knock me down and then I’m able to deliver it. I have to have all of the things working at the same time and working with you to make sure that happens.

 

“So it is a tall order. I do think we’ll be able to do it, and we will say more as we come up to the Spending Review and over the next couple of weeks, as I outline the situation in [regard] to the NPPF.”

 

The housing secretary also cited the prime minister’s “mission-based government”, which she said meant that there was a “cross-departmental view” on how to meet these core aims.

 

Cross-working between health, education and housing would all be required to meet its ‘opportunities’ mission, for example, alongside ensuring that energy infrastructure and transport is in place to unlock sites.

‘No longer an afterthought’

 

Ms Rayner began her conference speech by thanking the sector for the “incredibly important work” that it does, and offering reassurance that “no longer will social housing be seen as an after-thought – or worse, actively discouraged”.

 

“Affordable housebuilding is the beating heart of our housing plans, we have promised the biggest increase to a social and affordable housing, and yes, that also includes council housing, too,” she said. “It starts by going net positive, because we want to build more social homes than we lose.”

 

Ms Rayner emphasised that the mission was a “personal” one for her.

 

“When I was growing up, we didn’t have a lot, but we had a safe and secure council home. And later, when I needed a home to raise my son, I was given my own council home.

 

“I never got to where I am today in spite of coming from a council house, but because of it. It’s because of that security, because of that home that I’m standing here today as deputy prime minister.

 

“I say that loud and proud, because we must remove the shackles of stigma that is too often associated with social housing, and I have skin in the game, and I know that this is also true for many of you here today, so I want to thank you all for everything that you do to provide the decent, secure, affordable homes that people in our country need.”

 

At the same time, the deputy prime minister told the conference that while the sector has the government’s full support, it would also need to pull its weight on both delivery and quality.

 

“This government will always have your back, but with that support must come some responsibility: responsibility for ensuring that all homes are safe and warm and decent and that residents are treated with the respect that they deserve, with problems quickly resolved.”

 

“A lot of councils and social housing landlords already do a great job for their tenants, so we want to bring the whole of the sector up to this standard.”

 

The government has previously announced that it will bring forward legislation for Awaab’s Law in social housing to set tight timeframes for when hazards such as damp and mould must be investigated and remedied.

 

Partnership

 

Ms Rayner said that the government is ready to “turn the dial up” to fulfil its mission for more affordable homes.

 

“I’m asking you to work with me in partnership to deliver on our shared ambitions. And you know what a difference we can make,” she said.

 

Acknowledging that it would not be easy for providers to ramp up development again, Ms Rayner said: “Tell me what more I can do to help you, and I promise that I will work with you to deliver.”

 

She added: “Council housing associations and investors have been left picking up the pieces of years of failure, but there is hope. By working together in a new spirit of partnership, we can and will unleash a new generation of social housing. We can turn this hope into a national asset, [one] which builds better lives.”

 

The Social Housing Annual Conference took place on Wednesday 20 November in London. 

 

Update on 21.11.2024 at 5.12pm: The article was updated to provide newer figures for G15 rent convergence calculations, after these were shared upon request. The article previously referred to older calculations that 29 per cent of G15 members’ homes were below target rent, leading to an annual shortfall of around £68m.