Tag Archives: housing shortage

Record number of rough sleepers – is enough being done?

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homelessBy Heather Cameron

Rising for the seventh consecutive year, the number of rough sleepers in England has more than doubled since 2010. This is despite various initiatives over the years and a recent surge in political activity around homelessness.

The government has committed to halving rough sleeping by 2022 and eliminating it altogether by 2027 but given this alarming growth, it is difficult to see how this will be realised. Perhaps even more concerning is the recent revelation by the UK’s new Homelessness Minister, Heather Wheeler, that she doesn’t know why these figures have increased so significantly in recent years.

Highest ever recorded level – an underestimate

The government’s most recent annual rough sleeping count shows the highest ever recorded level. On a given night in autumn last year 4,751 people were recorded sleeping rough – an increase of 15% on the previous year and 169% since 2010.

However, the actual figure has been suggested to be much higher as these estimates only count the number of people sleeping rough on one night.

Recent research by homelessness charity, Crisis, found that more than 8,000 people were currently sleeping rough across England, predicted to rise to 15,000 by 2026, if nothing changes. The base estimate for rough sleepers across the UK is 9,100 – a figure that Crisis suggests is set to rise by 76% in the next ten years. And even these figures are recognised as an underestimate.

What’s behind this surge?

Lack of housing and rising property prices, along with government cuts and welfare reforms have been widely blamed for the increase in rough sleeping. However, Heather Wheeler has also said that she did not accept the suggestion that welfare reforms and council cuts had contributed to the rise.

Despite admitting she did not know the reason for the huge increase, Wheeler did hint at two contributory factors. She referred to a “classic” reason for rough sleeping as coming out of prison with no support and “a real problem in London with people coming over [mainly from Europe] for jobs, sofa surfing with friends, and then the job changes and they have a problem.”

Wheeler also highlighted the lack of supply of affordable housing as the real issue. Indeed, Crisis has also highlighted this as a particular issue that, if addressed, could lead to ‘particularly noteworthy’ reductions in rough sleeping.

But while lack of supply is cited as an issue by most, so too are welfare reforms and funding cuts – including by a recent parliamentary briefing paper:

“Factors identified as contributing to the ongoing flow of new rough sleepers to the streets include: welfare reforms, particularly reductions in entitlement to Housing Benefit/Local Housing Allowance; reduced investment by local authorities in homeless services; and flows of non-UK nationals who are unable to access benefits.”

A recent report from youth homelessness charity Centrepoint reported that 85% of local authorities said welfare reform aimed at young people is a barrier to delivering housing duties. It also highlighted a need for more funding.

Findings from the Institute for Fiscal Studies have also shown that government cuts mean that housing benefit no longer covers rent for almost 70% of people in social housing.

‘A step in the right direction’

Successive governments have introduced initiatives to tackle rough sleeping, including: The Rough Sleepers Initiative, No One Left Out and No Second Night Out.

More recently, there has been a surge of activity around homelessness which could provide grounds for optimism. The government has pledged £28 million for Housing First pilots in the West Midlands, Manchester and Liverpool. This approach has been proven to reduce rough sleeping in other countries and a recent study in the Liverpool City region concluded the scheme could save £4 million compared with current homelessness services.

The Homelessness Reduction Act, introduced last month, gives local authorities new responsibilities to step in earlier to prevent homelessness and support more people facing homelessness. Concerns have however been raised that councils will be unable to fulfil their new duties due to a lack of funding.

The government has also announced a new package of measures to tackle rough sleeping, which includes:

  • a new Rough Sleeping Team made up of rough sleeping and homelessness experts to drive reductions in rough sleeping
  • a £30 million fund for 2018 to 2019 with further funding agreed for 2019 to 2020 for local authorities with high levels of rough sleeping
  • £100,000 funding to support frontline Rough Sleeping workers to make sure they have the right skills and knowledge to work with vulnerable rough sleepers.

Crisis has described the government’s new rough sleeping initiative as “a step in the right direction” but argues that “it falls short of what’s required to truly end rough sleeping”.

Way forward

The evidence suggests that the rise in rough sleeping numbers is down to a number of contributory factors, including welfare reforms and funding cuts. And while the recent surge in activity is welcomed, frustration remains over the government’s failure to recognise the “baleful influence of welfare reforms”.

The chief executive of Crisis has argued that if the government doesn’t invest in social housing and change direction on welfare reform, any reduction in rough sleeping won’t be sustainable:

“We must acknowledge that the continued rise in rough sleeping is a result of welfare cuts, decline in social housing, soaring private rents and chronically underfunded support services. Until we do we will only be tackling the symptoms and not the causes.”

If you enjoyed reading this, you may be interested in our other posts on housing solutions for prisoners and Finland’s Housing First approach.

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Local authority housing companies: getting back into building

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Last December, research by Inside Housing magazine found that more than a third of English local authorities have already – or are planning to – set up their own housing companies.

The research showed that 98 out of 252 councils were considering the establishment of a private housing development company, or had already established one.  That’s a significant increase on the seven housing companies that existed in 2014.

The factors driving council housing companies

The 2011 Localism Act gave local councils the powers to establish their own private companies, enabling them to borrow money more cheaply and avoid government-imposed restrictions. A mixture of motives is now prompting local authorities to enter the housebuilding business. Some see the new companies as sources of additional revenue. In addition, homes built by these private companies are not liable to right-to-buy. The Inside Housing research also found that a number of councils want to target income generated on tackling homelessness in their area.

At the same time, councils are facing funding pressures. “Local authority budgets are biting more and more,” Croydon Council’s director of development Colm Lacey explained to The Architects’ Journal in February.

“For example, in Croydon we’ve lost more than half of our central government budget since 2010. That’s a slow drip-drip of a loss of resource. Quite quickly, you come to realise that you need to throw something else in to meet the gap.”

Most companies are being established as wholly owned subsidiaries of councils, while some are solely management companies, letting stock built by their parent local authority. Many are funded by councils borrowing money from the Public Works Loan Board at low rates and then lending it to the company at a market rate.

Early adopters

The types of councils establishing housing companies are very varied, from rural to urban, and across the political spectrum. There is also a wide geographical spread, with a growing number located in London.

Among the councils pioneering their own housing companies is Newham Council in east London, which established its Red Door Ventures company in 2014 to provide homes at market rents, with a third of profits to be invested in social or affordable housing. The company’s properties are built on land bought from the council by the company using a local authority loan. Already, three developments have been built, and planning permission has been given for two more.

Another council-established private development company is Brick by Brick, set up by the London Borough of Croydon Council in 2016. The borough owns a significant amount of land, but has found that procuring agreements with developers has rarely generated benefits to the council in terms of increased land values or development returns. In an interview with Local Government Chronicle, Croydon’s Colm Lacey explained the reasoning behind Brick by Brick:

“The model allows the council as land-owner, sometime finance provider and sole shareholder to extract value from the core components of development activity – funding, building and selling. It maximises both affordable housing supply and return from development activity to Croydon residents, and allows the council to reinvest in core services.”

 Learning from the pioneers: the upside and the downside

As more local authorities move towards establishing their own housing companies, they can learn from the experiences of early adopters, who can advise them on what to watch out for. This includes analysing council powers in relation to the establishment of a company, provision of funding, transfer of land, decision-making arrangements and potential conflicts of interest (for example in relation to planning).

At a time of acute housing shortages, the creation of house building companies takes on increased significance. Chartered Institute of Housing deputy chief executive Gavin Smart agrees that housing companies can help council deliver more homes, but warns:

“The downside is that the need to cross-subsidise might mean that their ability to produce new homes at genuinely affordable, social rents can be limited. It’s vital that they continue to prioritise building new homes at social rents.”

A rising tide or a drop in the ocean?

The trend towards council housing companies shows no sign of waning.

  • Cambridge City Council set up its housing company in January 2016, and the following May the company handed over its first rental property to new tenants.
  • The first of 128 new homes built by Gloriana – Thurrock Council’s housing company – will be completed this year in Tilbury. The development has been created to keep up with demand for homes from increasing numbers of people coming to work in the area, mainly in freight and retail.
  • Meridian Homestart is a company set up by the Royal Borough of Greenwich to offer high-quality homes for local working families to rent. These homes are let at 20% below local market rent levels in order to help working families who would otherwise find it hard to buy or rent on the open market.
  • A shortage of private accommodation has prompted Bracknell Forest Council to use its housing company to provide better and cheaper housing for homeless people.

At the moment, the contribution of council housing companies towards tackling the housing crisis is relatively small. Barking and Dagenham’s housing company, Reside, has so far delivered around 600 homes; while Blueprint, a joint venture between Nottingham Council and Igloo Regeneration, has completed 245 homes. That’s a drop in the ocean when compared to the House of Lords Economic Affairs Select Committee recommendation of 300,000 new-build homes each year.

Even so, housing companies have come a long way in a short time, and their rapid growth signals a much bigger long-term vision. As Sir Robin Wales, Mayor of Newham explains:

“We’re trying to correct 30 to 40 years of failure in the housing market, but it will take time.”

If you enjoyed this post, take a look at some of our other housing blog posts:

Prefabs sprout: could factory-built homes tackle the housing crisis?

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Long regarded as a relic of the past, prefabricated housing is now emerging as a potential solution for the UK’s chronic shortage of affordable homes.

Britain’s golden age of prefabricated housing happened after World War II, when the government authorised thousands of factory-built homes to replace housing destroyed by bombing raids. Intended to last for no more than ten years, many prefab homes were still occupied thirty years after construction.

For a period during the 1960s, prefab housing enjoyed a resurgence. One scheme was showcased at Montreal’s Expo 67 as a solution for high-quality housing in dense urban environments. But in Britain prefabs became associated with shoddy, damp and dysfunctional housing. The largest remaining post-war prefab estate, located in London is now facing demolition.

The prefab renaissance

In recent years, prefabricated housing has been rebranded and is now showing signs of making a comeback:

  • In Yorkshire, the Legal & General insurance firm has opened the world’s largest modular homes construction factory.
  • In Manchester, regeneration company Urban Splash is developing a 43-home scheme, with each house designed by the customer, then built offsite and shipped to the New Islington estate.
  • In Lewisham, south London, Rational House is working with AECOM to build “off-the-shelf” homes for young professionals struggling to get on the property ladder.

Renewed interest in prefab housing has been driven by the severe shortage of housing in the UK, along with the rising cost of traditional construction methods. At the same time, new materials and construction techniques have made prefab homes a more economic and attractive option. This week, leading engineering firm Laing O’Rourke has suggested that the acute lack of space in Britain’s cities could lead to the next generation of tower blocks being built almost entirely off-site.

In its 2017 housing white paper, the government proposed measures to stimulate the growth of the offsite construction sector and promote more factory built homes through the Accelerated Construction programme and the Home Builders’ Fund. The paper highlighted Creekside Wharf in Greenwich as a good example of prefab housing’s potential.

The benefits and challenges of prefab housing

The champions of prefab housing argue that it provides comfortable, well-insulated homes that can be constructed much more quickly than traditional building. Offsite construction can deliver a modern prefab apartment block in half the time that it would take to build using traditional methods, which means that units for sale or rent can start making money more quickly. Proponents also argue that offsite construction generates less noise, dust and disruption for neighbours. And although offsite costs remain higher, the margin is narrowing as prefab manufacturing achieves efficiencies of scale.

But although today’s prefab homes are a world away from their post-war forerunners, critics have argued that contemporary prefab housing is no match for a traditionally-constructed home. There have also been concerns that prefab homes could be deployed as a quick fix. The Guardian’s architecture and design critic, Oliver Wainwright commented:

“If taken up as the silver bullet to endless waiting lists, there’s a very real risk it could sow the seeds for a future of cheaply built, meanly scaled, less stable housing that can be conveniently swept away at a moment’s notice.”

Some have expressed concern that factory-built homes could end up deskilling traditional building, but others believe that prefabricated housing could plug a skills gap in the construction sector after the UK leaves the European Union.  Meanwhile, lenders to developers are still cautious about financing prefab projects until their long-term durability has been tested.

Prefab present…

Despite these reservations, prefab housing is shedding its outdated image and increasingly entering the mainstream housing sector. In some areas, factory-built housing is already being deployed to help people with urgent housing needs.

The architecture firm of Rogers Stirk Harbour and Partners is internationally famous for its cutting edge projects, from Heathrow Airport’s Terminal Five to the National Assembly for Wales. But in 2015, the firm joined forces with the London Borough of Merton, the YMCA and Aecom to create Y:Cube. The first 24-home Y:Cube development is located at Mitcham in south-west London, and took just five months to build. Tenants come from YMCA hostels and Merton’s housing waiting list, finding the flats as welcome alternatives to hostels and B&B accommodation. A similar project is taking place to provide Y:Cube accommodation for local people with acute housing needs in the London borough of Lewisham.

Beyond the capital, further prefab housing developments are in the making:

  • Manchester City Council has been leading an offsite construction consortium of 17 housing associations with the aim of building hundreds of new homes in the north of England.
  • In December 2016, Your Housing Group announced a partnership with a Chinese construction firm to deliver 25,000 prefabricated homes over the next five years.
  • Swan Housing Association is building an 18,000 sq ft factory to deliver new homes for the regeneration of Basildon’s Craylands estate.

…and prefab future?

While prefab housing is gathering pace, one entrepreneur is taking the concept to the next level. Alastair Parvin, a graduate of Sheffield University’s school of architecture, believes that harnessing the possibilities offered by technology can make building a house more straightforward.

The idea behind Parvin’s “WikiHouse” is to enable users to draw up plans for their new home online. But instead of the house then being constructed at one offsite location, the components will be manufactured by a network of small business and community spaces – known as maker-spaces.

We’ve come a long way from the prefab housing of the post-war years, and perhaps there’s some way to go before the vision of the WikiHouse is realised. In the meantime, prefabricated housing could offer a much-needed boost to tackling the nation’s existing housing shortfall.

If you liked this post, you may also be interested in our other blog posts on suggestions for tackling the UK housing crisis:

New ideas for housing in London

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2015 was the year London’s population reached 8.6 million, a peak figure last reached in 1939. The capital’s population is set to rise by a further 1.6 million over the next 20 years, and by 2050 may have reached 11 million, more than the current combined populations of Scotland, Wales and Northern Ireland.

The rising numbers will add exacerbate the shortage of housing in the capital, which the head of the London Housing Commission has described as “one of the biggest public policy failures of the last 50 years.”

A showcase for new ideas
A major exhibition highlighting new thinking on solving London’s housing crisis is currently taking place. Organised by New London Architects (NLA), “New Ideas for Housing” highlights more than 100 ways in which London’s shortage of housing might be addressed.

Ten of the 100 shortlisted ideas were selected as winning entries from a competition that attracted ideas from architects, contractors, manufacturers, economists and house builders.

Among the winners were:

The Urban Darning Project
Employing the sewing technique for repairing holes or worn areas in fabric, the project aims to encourage small residential developments in central London to ‘fill-in the gaps’ of the urban fabric.

Supurbia
This idea has twofold approach: redeveloping local main streets and parades as mixed-use places with increased housing and amenity provision; and allowing owner-occupiers of semi-detached homes to develop their land, creating rich diversities of housing.

Investing in London’s Future by Learning from its Past
Drawing on London’s former leasehold system, this idea suggests that separating the cost of housing as a physical product from land costs would make it more affordable to build and buy houses.

MegaPlan for a MegaCity
The originators of this idea suggest that in order to meet the shortfall in housing by 2050, less than 4% of ‘edge land’ (the inner belt running from the inner London Green Belt to the M25) would need to be released from the Green Belt.

Wood Blocks
This idea proposes scaling up the growing appetite for self-build homes. A structural, weatherproof, thermally- and acoustically-insulated shell would be built by a developer / housebuilder, which could then be partitioned and fitted-out by new owners, delivering faster and cheaper housing.

The ideas are described in greater detail in a publication accompanying the exhibition. The NLA Insight Study also examines the current state of play in London’s housing supply, addressing the barriers around planning, land, funding, construction, procurement and design.

New Ideas for Housing
Exhibition dates: Thursday 15 October – Thursday 17 December 2015. Opening time: Monday to Friday: 9.30 am – 6.00 pm; Saturday: 10.00 am – 5.00 pm.
Address: NLA, The Building Centre, 26 Store Street, London WC1E 7BT
http://newlondonarchitecture.org/

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