Respondents: Adam Sampson, Chief Executive of Shelter, and Louise Bamfield, Research Fellow at the Fabian Society

Chair: Sunder Katwala, General Secretary.

After a brief introduction by Sunder Katwala, Ms Yvette Cooper MP took to the stage to deliver her speech on the future of housing.

Her opening remarks concerned the fact that while both the Fabian Society and the Labour Party have strong historical ties to the issue of housing and, in particular, the link between housing and social justice, recently the issue has not received sufficient political attention. However, the Minister warned that we should not underestimate the importance of housing as a factor within the broader issue of social justice. The fact is, poor housing affects life chances. Education, health, mental health and general wellbeing all suffer as a result of unsatisfactory living conditions and, unsurprisingly, it is the youngest, the ones in their most formative years, who are the most vulnerable.

Because of a wider recognition of this correlation between poor housing and the widening inequality gap there are now mounting pressures in the field of housing – both to improve existing stock and for increased increased rates of new-build. Gordon Brown, it was suggested, will make housing a priority during his imminent premiership.

The Minister continued by evaluating the successes of the current Labour Government in the arena of housing. On entering office, three main challenges stood out:

1. Rebuilding the economy (and the housing market) after the mid-90s recession.

2. Tackling the backlog of poor housing unfit for habitation.

3. Addressing the issue of homelessness.

In all three of these areas progress has been made:

1. The economy has improved dramatically, as have house prices.

2. Significant successes have been made in bringing existing housing up to habitable conditions under the Decent Homes scheme.

3. The numbers of homeless have decreased year on year.

Ms Cooper also pointed out that we had witnessed an "urban renaissance" – a regeneration of rundown urban areas such as Manchester city centre and the Thames Gateway.

Despite these successes, several challenges remain. The greatest of these is the need to increase the number of homes being built from the current level of 160,000-170,000 per year, to 200,000 per year. There are also cyclical challenges within the housing market. One of these concerns the link between long term house price increases and the housing shortage, and, in turn, the implications this has for first time buyers. Elevated house prices significantly benefit those who already own property, but their gain comes at the expense of those trying to break into the market. First time buyers are increasingly reliant on parents and grandparents who already own property, penalising therefore those without the security of family assets. This reinforces existing class hierarchies and decreases social mobility, thereby widening the social inequality gap – a matter of social justice that Ms Cooper and the Labour Party are committed to addressing.

These are tough challenges, but nothing new. Governments from the late Victorian era to the present day have faced a number of major housing crises, and have been forced into making difficult decisions. Not all of the consequences of those decisions have been positive – the high-density developments of the 1950s and 60s, whilst practical and economical, have arguably contributed to the ghettoisation of certain inner-city areas – and the decision made by the Tories in 1980 to give council tenants the right to buy may be considered the root-cause of the problem we currently face over inflated housing costs.

Ms Cooper explained that finding the right solutions, will involve the various agencies working together. More needs to be done by Housing Associations and by local councils. Although many councils have already come forward to identify brownfield land for redevelopment, still more has to be done. It would also help, Ms Cooper suggested, if the Government relaxed laws preventing councils from investing rents accrued from tenants into new housing – an allusion to the so-called 'fourth option.' (Whether this is an indication of the direction a Brown government will take us is yet to be seen).

Ms Cooper then went on to identify two key problems. Firstly, the Government will need to win public support. There is some high-profile opposition to the planned house building increases, mainly emanating from the Conservative Party, and it is important the Government does not allow the Opposition to use this as an electioneering device by whipping up public hostility. Secondly, the Government must proceed with the issue of climate change firmly in mind. Homes yet to be built will account for 1/3 of the total housing stock by 2030, and thus it is imperative that these new homes are carbon efficient. Ms Cooper referred to Gordon Brown's vision of five new "eco towns" as evidence of the Government's commitment to green issues.

In summing up, Ms Cooper reiterated the fact that the challenges of the next ten years will be great, but that, by drawing on the lessons of past housing policy, we can meet the challenges of the present and future generations.

Respondent: Adam Sampson

Adam Sampson responded to Ms Cooper's speech positively. He expressed his delight that housing was now at the top of the political agenda, and commended Ms Cooper for affirming her Party's commitment to tackling the housing crisis. What matters now, he noted, was what the Government was actually going to do.

He warned that a supply-led system of housing was insufficient, as new housing was too often going into the buy-to-let industry rather than to the people who actually need homes to live in. For this reason the Government needs to develop a demand-led system of home building requiring substantially more investment than is currently envisaged.

Respondent: Louise Bamfield

As the lead Researcher on the Fabian Life Chances commission, Louise Bamfield was well placed to reinforce the link between life chances and housing. The problems of unsanitary, cold and overcrowded housing, and the problem of constant moving associated with temporary accommodation, are all harmful to children's life chances.

Although Louise applauded the Labour Government for being the first to tackle the problem of area-based disadvantage – acknowledging the fact that significant improvements have been made in the standard of social housing – she pointed out that there remained a serious question over the issue of social mobility, as highlighted by the Hills Review. What we want to see, stressed an impassioned Ms Bamfield, is social housing that actually improves the chances for social mobility. Part of this involves creating genuinely mixed communities which can help foster confidence and aspirations.

Opening the debate to the floor, a question was asked about the fourth option. Ms Cooper clarified that councils would not be able to borrow in the way that housing associations can because they are public bodies. However, she did say that there should be greater flexibility about how councils are able to release their assets for building projects, and that there would be pressure on councils to do this and pressure on them to locate and put forward brownfield land.

The Minister was also asked about the problem of rented accommodation. Renting, it was pointed out, needs to become both affordable and socially acceptable. The Minister concurred with this point, as did Adam Sampson, who said that there is an overwhelming need, given that the average income of people in social housing is £7,000 p/a, to supply affordable rented housing that is predictably available for the poorest for a lifetime.

The event ended with a last word from the Minister about the need for cooperation between central government, local councils and housing associations.

Seth Singh Jennings

Back to Housing and Life Chances