TCG5 – HA’s cry poverty while creaming £1bn pa more from social tenant

The consultancy Savills have today been holding a conference and advising housing associations to abandon any idea of social housing if they want to survive!

Have a look at the following slide that has just appeared on Twitter from the conference –

savills ha survival kit

Notice there is no mention whatsoever of social housing, that is homes set at a social rent level!

Wrap this up anyway you choose and no doubt the aggressively private and secretive cabal  – called the G15 who pull the strings on the puppet National Housing Federation (NHF) which is the umbrella body for housing associations will try their best to spin this, yet it means the end of social housing as we know it.

If any further proof were needed that the NHF were in cahoots with Government let me remind you of what the NHF put out in their “A Plan for Homes” campaign a few months back –

selloutnhf

To return to Savills, they say 70,000 (ahem!) “sub-market” new properties will be needed each year by which they mean the misnomer of “affordable (sic) rent” that has rents set at up to 80% of market rent

savills70k

To put a figure on that the average social rent for a 3 bed in London is £136 per week and the average “affordable (sic) rent” is 65% of market rent in London (80% elsewhere) at £310 per week. Both figures from the official housing regulators SDR released September 2015 and the difference is £9079 more per year per property.

So just in London this is – per year – 26,000 additional properties at an increased rent of £9,079 each meaning an additional £236 million per year in rent for London Housing Associations.  Add on another £160 – 165 million for the 43- 44,000 AR units in the regions and it comes to HA’s swiping an additional £400 million or so per year from the social tenant in rent.

So that’s why the G15 want nothing to do with the social rent model then!

So that’s why all housing associations have abandoned their social mission!

All we need now is to bring the above up to date with the voluntary right to buy extended to housing associations which sees the forced sale of council houses to pay the HA’s for the RTB discounts they give while tugging the forelock to Government

hasqedThat just about sums it up!!

Dear Social Tenant, You need any more reasons to unite and mobilise through the Tenant Campaign Group (TCG)?

Oh did I mention that HA’s already cream an additional £300 million or so off the social tenant through the affordable (sic) rent model?  So now they want that to be £700 million more off the social tenant this year and each year thereafter!

Oops nearly forget the additional £473 million in pay MORE to stay they will cream off too – so that’s over £1 billion more per year from the social tenant…and these are the same housing associations typically laying off 15% of their staff and crying poverty despite a record 24.7% increase in surpluses last year!

Should I really use the term ‘surplus’ for HA’s and not ‘profit’ as they consider themselves private organisations?

Just one of the double standards these wolves in sheep’s clothing have?!

If you are one of the 4.3 million social tenant households that hold 5.6 million adult VOTERS and you want to mobilise and fight this and other social tenant issues then the TCG is being set up for that precise purposes.  Please read this short post which explains why the TCG is needed and has links to the earlier posts of the TCG or go to the Facebook page created here last night with 350 or so members already in that time. 5.6 millions voters live in social housing and united we represent a very powerful lobby.

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7 thoughts on “TCG5 – HA’s cry poverty while creaming £1bn pa more from social tenant

  1. And I failed today to get a reprieve from paying bedroom tax; next step letter of appeal to go to Councils Appeals Officer who liaise with Tribunal Service. All this on top of having to swop from DLA to PIP which means I have to make a new application even though my DLA is within its duration of award time; such is life!

  2. Excuse my management speak, are Savills having a fucking giraffe? Why don’t housing associations just stick to their knitting of core competencies? Next we will hear that housing associations should diversify into the banking, retail, hotel and any other sector one could think of!

  3. I wasn’t at the conference so I don’t know about the context this slide was shown in but discount rent is on the slide which could be akin to social rent? As with the NHF plan where they advocate higher capital grants to reduce rents. Both COULD be social rent by another name that isn’t waving the red flag at the government.

    I’m sure some won’t adopt it in this way though.

    As for pay more to stay our initial calculations estimate it will cost us more to administer than we would likely get in before you even factor in added incentive to exercise the RTB and increase in turnover. RPs creaming it off the tenant is very disingenuous given we (certainly at Wulvern) are against this bonkers policy. I know many other RPs feel the same.

    1. The slide has a % sign and scissors so for me this can only mean AR as a % of Gross Market Rent and not social rent. The NHF Plan for Homes also has no social rent from a few months back too.

      Creaming off the tenant is what AR is – and as over 60% of AR units are conversions – very specifically.

      Pay MORE to stay sees the HA forced to charge the higher GMR and even if it costs more to administer – that is what it says in the PMS consultation and in the Bill itself. HAs will be forced to charge the higher rent.

      Totally agree it is bonkers policy but isn’t that what we have come to expect?

      All the tenant will see is the HA charging more and regardless of it costing the HA more to administer – and that is a huge issue that the NHF and its HA acolytes fail to see. Given that HAs are NOT challenging PMS or challenging anything in the Housing & Planning Bill or in Welfare and Work Bill AND HAs proposed the voluntary deal then perception counts hugely and the HA that remains quiet now publicly loses all tenant trust. Just another issue the NHF fail to see and frankly disregards at their peril.

      In those regards the HA responses to Govt policy as more bonkers than the original policy

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