The Tories’ plan to raise council housing and housing association rent shows their hypocrisy

Just when you think the “Alice in Wonderland” hypocrisy of this Government can’t get any worse. Now we have the sight of the Tory government claiming to be the party of “Hard working Blue Collar workers” whilst at the same time bringing in weekly rent rises of between £50-£100+ for skilled and semi- skilled workers living in Council Housing or housing Association Homes – the so-called “affluent” households earning more than £30,000 per year or £40,000 in London. The idea of Cameron and Osborne, bankrolled by the Notting Hill set and Russian Billionaires, calling the families of Engineers, Post Office workers and Lorry drivers affluent takes your breath away.

That’s what they are proposing. Tenants of non-profit Community housing – Council or Housing Association homes – will have to pay the same rent as profit making private landlords charge. They propagate the myth that rent levels in Community Housing are “subsidised” in some way when this has been illegal since Margaret Thatcher in the 1980’s. They ignore the obvious fact that rent levels are lower because councils and Housing Associations are non profit making whilst private landlords (understandably) want to maximise their profits.

Private landlord rents have gone through the roof in many areas, fuelled in many cases by government subsidy in the way of buy to let schemes and housing benefit. Simple economics tell you that putting hundreds of thousands more into the private sector can only put those rent levels up even more.

If these proposals go through the consequences for Community Housing will be dire.

• It will be another nail in the coffin of mixed communities as many of the economically active are forced to move.
• It will be a real cap on aspiration – “ Take a promotion at work-Love to but I can’t afford it”
• There will be a major increase in right to buy applications as many tenants will feel forced to buy their homes rather than pay massive rent increases.
• New building will come to a halt as Council and Housing Association borrowing plans are ripped to pieces. Current investment plans are based on a government assurance of rent increases of Consumer Price index plus 1% over the next 10 years. Now the Government are saying rents will go DOWN by 1% a year. Essentially this is a Housing Benefit cut with the cost being borne by Councils and Housing Associations.
• As with the “Poll Tax” many people, especially men will go missing, coming off the rent book. The relation between Community Landlords and their tenants will be soured as landlords are expected to police their tenants – “Is that a pair of men’s shoes under the bed? So much for the advocates of a smaller state.

Families earning more than £30,000 will be faced with Hobson’s choice:

• Move out of your home – but what’s the point as everywhere else will be charging the same rent.
• Buy your home – but for many, especially in the South and London, this will not be possible even with the maximum discount of £103,900 in London. How far does that go towards a 2 bed flat in Camden?
• Pay the new rent level – but if you haven’t got the money…?

The finest piece of legislation from the first Labour Government in the early 1920’s was John Whitley’s Housing Act, which led to the building of over 500,000 Council Homes. Ironically, in the early days council housing was seen as the preserve of skilled workers and the lower middle class as tenants had to be in regular employment to pay the rent.

Community Housing became one of Labour’s keystone successes, providing good quality housing at a decent rent for ordinary people and the introduction of security of tenure in the 1980’s removed the fear of eviction from millions of working class people. Cameron, Osborne and the like don’t understand that basic need that ordinary people have for a secure home to raise their family and build a life; they have never had to worry about it.

They believe Council Housing should be housing of last resort – poverty housing like the projects in America. They don’t understand that it’s not just a house – it’s a home.

Labour has to fight for its own vision for housing. Building enough homes for Britain’s people, full support for owner occupation, full support for Community Housing as a viable alternative and decent right for private tenants. In short, a housing policy meeting the needs of all our people.

Peter Wheeler is a Labour councillor and a former member of the National Executive Committee.