Chartered Institute of Housing South East

9 September 2010  |  You are here: Home > News > Article

Our regular policy and practice update

14/01/10

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Michelle Chivunga, South East Policy and Practice OfficerMichelle Chivunga, South East Policy and Practice Officer (right), gives an update on the region's policy work over the last few months, and its plans for the year ahead.

Housing in the South East

Housing continues to be in the headlines - although the climate seems more optimistic, despite the fact that we are still facing a recession. Housing trends indicate house prices have been slowly rising. However, major issues are still crippling the housing market.

Some of the more prominent issues in the South East include affordability pressures, financing constraints and delivery barriers - challenging the region to address these issues in a very complex and difficult climate. Given the collapse of the financial markets and the slow process of recovery, the biggest challenge for housing providers has been funding requirements - grant levels have reduced and it's difficult to access the affordable financing needed to roll out plans.

Providers in the region, like in other regions, have had to work with tighter budgets, being innovative and prioritising budgets to areas of most significance. The level of first-time buyers in the market has reduced - it's become more difficult to access mortgages and many are finding it extremely difficult to come up with the initial deposit, even for shared ownership properties.

The lack of affordable housing in the region has resulted in a higher demand on social housing. The South East has over 200,000 people on the waiting list. As there are less developments, councils are finding it hard to reduce waiting list numbers. Some are converting unsold properties to social rentals to meet this growing need.

Our region is seeing changes in demographics with rising numbers of migrants, elderly people and people from a wider mix of ethnic backgrounds. It is paramount that the housing needs of these groups are understood and met at the same time, driving forward the equality and diversity agenda.

As we come close to a general election and the possibility of changes in government, the South East region has recently reviewed its priorities. We have produced a new manifesto which highlights the key issues, facts and solutions for the region.

The region provides essential jobs to a growing population which needs to access affordable housing. Although the South East has previously benefited from a high level of economic performance and competitiveness (in comparison to other regions), growth will now be hindered more by insufficient housing supply and other infrastructure limitations. And so there is a need for the region to quickly think about other investment and financing options.

Housing providers need to revaluate plans and gear up to better understand the financial issues, explore other delivery mechanisms and review their existing resource base to move forward. The financial climate in the external environment is going to be rather difficult following the pre-budget report as we see a fall in funding and cuts in regeneration work. On a positive note, it's encouraging that some investment will go into Homebuy Direct schemes (£150 million) and improving energy efficiency for homes (£200 million).

Key priorities for the South East

The issues outlined in our manifesto have a real impact for communities. Housing providers need to be innovative and work in partnerships to explore new models to help tackle these issues. The region's top five priorities are:

The CIH South East policy team has actively engaged in a variety of activities and strengthened its messages through its events and partnerships, including the South East Housing Coalition (SEHC). The SEHC recently held a seminar exploring new models of housing delivery and the barriers limiting delivery.

The South East also delivered messages through key events including its homeownership conference, a Tenant Services Authority (TSA) regulation event for residents, and one focusing on the impact of the Single Equality Act on housing. These areas have huge implications for the way that housing providers work now and in the future, particularly if the TSA remains the regulatory body after the elections.

The TSA concluded its 'national conversation' and has consulted on its proposed statutory regulatory framework. Housing providers will need to consider their readiness for the TSA and its regulation of registered providers' management, financial viability and governance elements should it come into full fruition. Providers in the South East have engaged with the TSA and welcome the regulator's proposed standards, although there still remains issues about how the process will work out in practice and the degree of intervention. It is crucial for housing providers to work with tenants - co-regulation will establish the priorities that are important to them, driving policies that matter to the tenants. Tenants will be empowered and given the powers to scrutinise landlords as they provide the services.

Given that housing associations, local authorities and Almos will be regulated by the TSA, it is equally important to continue the debate about regulation in the private sector. This sector has the potential to contribute more affordable housing in the future, especially in the South East. However many issues around quality and standards need more extensive debate.

Regional Policy Officer's key focus area

Michelle is currently exploring the links between housing and the economy in the region. Following the credit crunch it is clearly evident that housing has significant implications on the economy. There is no question that it contributes to the growth of the economy but it is difficult to identify the links. It is important to clarify what role housing has in driving economic growth and how housing professionals can help to drive this. Housing needs to be placed much higher up the economic agenda but, to be there, it needs to be clear what contribution it makes and how.

What is the evidence of links between housing and the economy? What are the gaps or barriers? How do we, as a sector, tackle these barriers and work with other sectors to drive housing right up the economic agenda? As we develop housing, how are we supporting and embedding the local enterprise needed to support the economy? Exploring the impacts of housing provision on economic elements is crucial. As is identifying the social and environmental impacts on communities. The aim of the review is to have a better understanding of the links and promoting policies to improve them.

Future events for the South East

The region's events are selected to help our members and other partners share good practice and solutions for some of the issues outlined.
Planned regional events for 2010

Other events in 2010