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Len Duvall: Boris Johnson's housing plan for London isn't working Len Duvall: Boris Johnson's housing plan for London isn't working
(7 months later)
London mayor Boris Johnson's record on housing is dire. Although Johnson claims the credit for delivering a record number of affordable homes, many of these were started by his predecessor, and his own record for initiating projects is poor.London mayor Boris Johnson's record on housing is dire. Although Johnson claims the credit for delivering a record number of affordable homes, many of these were started by his predecessor, and his own record for initiating projects is poor.
He is building fewer homes and the ones that are being built are more expensive. London's housing crisis just gets worse and worse. Johnson is either out of touch with the realities of the crisis or is deliberately seeking to make housing more expensive.He is building fewer homes and the ones that are being built are more expensive. London's housing crisis just gets worse and worse. Johnson is either out of touch with the realities of the crisis or is deliberately seeking to make housing more expensive.
Since his new affordable housing programme began in April 2011, housing starts (buildings on which construction has begun) have fallen off a cliff. In 2010/11 there were 16,328 affordable housing starts, but in 2011/12 there were only 4,291 – a drop of 74%. These figures also show the extent to which social rented housing is being phased out by the mayor. In 2010/11 there were 11,329 social rented starts, but in 2011/12 this figure was 983 – a drop of 91%.Since his new affordable housing programme began in April 2011, housing starts (buildings on which construction has begun) have fallen off a cliff. In 2010/11 there were 16,328 affordable housing starts, but in 2011/12 there were only 4,291 – a drop of 74%. These figures also show the extent to which social rented housing is being phased out by the mayor. In 2010/11 there were 11,329 social rented starts, but in 2011/12 this figure was 983 – a drop of 91%.
The mayor is delaying the delivery of affordable homes, a move that will not only leave many families waiting for several years to move into their new homes but could ultimately backfire.The mayor is delaying the delivery of affordable homes, a move that will not only leave many families waiting for several years to move into their new homes but could ultimately backfire.
Johnson plans to deliver nearly 40% of the 55,000 affordable homes pledged for between 2011 and 2015 during the final year of the programme. However, the London Assembly's budget committee reported that "In view of the length of time it takes to build a new home it is also hard to believe that, with only 425 housing starts this year, nearly 20,000 homes can be completed in 2014-15."Johnson plans to deliver nearly 40% of the 55,000 affordable homes pledged for between 2011 and 2015 during the final year of the programme. However, the London Assembly's budget committee reported that "In view of the length of time it takes to build a new home it is also hard to believe that, with only 425 housing starts this year, nearly 20,000 homes can be completed in 2014-15."
But not only will the mayor's homes not materialise for years, they will not be affordable to those who need them. The mayor is currently blocking London boroughs from delivering affordable housing through his revisions to London planning policy. He is forcing boroughs to ensure that affordable housing can be charged at up to 80% of market rent. As a consequence, "affordable" housing could end up requiring a household income of over £108,000 for a 3-bed home in Westminster, £100,000 for a 4-bed home in Camden and £67,000 for a 2-bed home in Islington.But not only will the mayor's homes not materialise for years, they will not be affordable to those who need them. The mayor is currently blocking London boroughs from delivering affordable housing through his revisions to London planning policy. He is forcing boroughs to ensure that affordable housing can be charged at up to 80% of market rent. As a consequence, "affordable" housing could end up requiring a household income of over £108,000 for a 3-bed home in Westminster, £100,000 for a 4-bed home in Camden and £67,000 for a 2-bed home in Islington.
But while Johnson, with his £400,000 a year salary, could afford these prices, he is doing nothing to help those 800,000 households in London's private rented sector who are trying to get by on the minimum or living wage.But while Johnson, with his £400,000 a year salary, could afford these prices, he is doing nothing to help those 800,000 households in London's private rented sector who are trying to get by on the minimum or living wage.
While the majority of private landlords do the right thing, a substantial number of rogue landlords and letting agencies make the lives of Londoners a misery. To date, Johnson's only contribution has been to demand more of the voluntary self-regulation by landlords and letting agents that currently exists – continuing those same tired practices that have led to extortionate rent increases and poor standards. As far as Johnson is concerned, when it comes to regulation of the private rented sector, the landlords and letting agents know best.While the majority of private landlords do the right thing, a substantial number of rogue landlords and letting agencies make the lives of Londoners a misery. To date, Johnson's only contribution has been to demand more of the voluntary self-regulation by landlords and letting agents that currently exists – continuing those same tired practices that have led to extortionate rent increases and poor standards. As far as Johnson is concerned, when it comes to regulation of the private rented sector, the landlords and letting agents know best.
Labour's budget proposals urge the mayor to change course. We propose three concrete steps.Labour's budget proposals urge the mayor to change course. We propose three concrete steps.
First, set up a Greater London Authority (GLA) "know your rights" website for tenants. This would be developed in partnership with charities and would provide easily digested information for tenants about their rights and give them advice about how to deal with landlords over issues like tenancy agreements, repairs and deposits.First, set up a Greater London Authority (GLA) "know your rights" website for tenants. This would be developed in partnership with charities and would provide easily digested information for tenants about their rights and give them advice about how to deal with landlords over issues like tenancy agreements, repairs and deposits.
Second, start an action research project to establish a London-wide lettings agency. This would help eradicate extortionate letting agent fees and free good landlords from agents who charge up to 10% of rental income for just marketing properties. Since these practices inflate London rents that are already 75% higher than the rest of the UK, a GLA lettings agency would help to push down on rent increases and allow families to access much needed longer-term tenancies.Second, start an action research project to establish a London-wide lettings agency. This would help eradicate extortionate letting agent fees and free good landlords from agents who charge up to 10% of rental income for just marketing properties. Since these practices inflate London rents that are already 75% higher than the rest of the UK, a GLA lettings agency would help to push down on rent increases and allow families to access much needed longer-term tenancies.
The private rented sector has changed and is no longer simply the destination of choice for the young and economically mobile. Families with children accounted for 20% of the recent growth in the tenure in London. It is vital that we begin to give these families the security they need.The private rented sector has changed and is no longer simply the destination of choice for the young and economically mobile. Families with children accounted for 20% of the recent growth in the tenure in London. It is vital that we begin to give these families the security they need.
Finally, we would start the process of bringing much-needed stability to rent increases through commissioning a study to create a London Living Rent. Unlike Johnson, we believe it is time rent increases were brought under control.Finally, we would start the process of bringing much-needed stability to rent increases through commissioning a study to create a London Living Rent. Unlike Johnson, we believe it is time rent increases were brought under control.
We believe that no Londoner should have to pay more than one-third of their income on rent. Using successful schemes in other countries as its basis, the study will develop a measure for assessing the reasonableness of rents and explore what powers the mayor would need to stabilise rents. If such schemes can create much larger and better functioning private rented sectors across the rest of the world, we see no reason why they shouldn't do the same in London.We believe that no Londoner should have to pay more than one-third of their income on rent. Using successful schemes in other countries as its basis, the study will develop a measure for assessing the reasonableness of rents and explore what powers the mayor would need to stabilise rents. If such schemes can create much larger and better functioning private rented sectors across the rest of the world, we see no reason why they shouldn't do the same in London.
Johnson has a clear choice, he can take action now to help Londoners suffering at the hands of London's housing crisis, or he can continue to blame others. Our plans show that the mayor of London could be doing much more to help people privately renting in London. Stabilising rents, tackling rogue landlords and letting agents and empowering tenants.Johnson has a clear choice, he can take action now to help Londoners suffering at the hands of London's housing crisis, or he can continue to blame others. Our plans show that the mayor of London could be doing much more to help people privately renting in London. Stabilising rents, tackling rogue landlords and letting agents and empowering tenants.
Politics is about choices. The mayor is choosing to make London's housing crisis worse. We believe there is an alternative.Politics is about choices. The mayor is choosing to make London's housing crisis worse. We believe there is an alternative.
Len Duvall AM is leader of the Labour Group on the London Assembly, he tweets @Len_Duvall Len Duvall AM is leader of the Labour Group on the London Assembly, he tweets @Len_Duvall
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