Who do you think you are kidding Mr Cameron…

Over the weekend David Cameron announced he will rid Britain of the 100 worst council housing sink estates.

A quick few general points below and of necessity no details were given of this just the nice soundbite on the very friendly Marr show.

  1. Nice of Cameron to label council housing and sink estate which is no change in the usual Tory narrative.
  2. The Government will put in £140 million and then expect (ahem!) private money and institutional investors such as pension funds to contribute the rest.  Yet Andrew Neill on the BBC Sunday Politics said he had looked in depth before for institutional investment in social housing and it comes so far to a big fat ZERO!
  3. Then a very readable article by Jayne Linney today says that where this programme of demolition has been tried before only half of the previous council housing is replaced – the other half being private rent or private sale.

So if the top 100 council estates – the failing sink estates in Cameron’s deliberately engineered jargon – each have 500 properties, this first phase sees 50,000 council houses demolished and replaced with just 25,000 and a net loss of 25,000 council and therefore genuinely affordable properties are lost.

Yet, if the institutional investment does not flow, which is improbable, will the £140 million government funding merely pay for 100 council estates being demolished simple leaving available land but no funding for council or other social housing and then all be used for private rent and private sale?

dads army wise  dads army wise  dads army wise

In summary we have two options:

(a) private and/or institutional investment does materialise and there’s a 50% loss of council housing; or

(b) private funding does not materialise and 100% of council housing is lost.

Given it makes much better business sense for the private investor NOT to have council housing in amongst private rented and privately owned properties then the likelihood is the latter and these former council estates become high cost private only housing built on what was formerly council land.

At least Captain Mainwaring was a transparent idiot Prime Minister

stupid boy stupid boy

6 thoughts on “Who do you think you are kidding Mr Cameron…

  1. It looks like Cameron has taken a leave out of @ManCityCouncil’s textbook. It started the clearances of so-called slum dwellings of Hulme. Except, not all houses were slums, as they had already been demolished. And in the process, families and communities were scattered to the Derbyshire and Cheshire. And the housing was replaced by the infamous ‘crescents’ built by corrupt builders, in bed with corrupt politicians. In the 1990s, with Government and EU funds, Hulme was once again demolished and rebuilt. This time a mix of social housing and private housing. This tax-payers money, benefited the likes of Bellway Housing, nicknamed Bellway Hellway Housing. And since then, council houses have been demolished by the council. After they withhold maintenance and repair work on the estates and start classing them as slum estates. The houses are then replaced by private housing, at exorbitant prices, built with Government and EU money. And the EU has threaten to claw-back money from @ManCityCouncil, because it cannot properly account for it! In the meantime, companies like Urban Splash, make a fortune, declare themselves bankrupt and start again. It is not just the Conservatives who have attacked council housing, but also Labour. The Conservative attack on council/social housing is more open, than the insidious attack by New Labour.
    We need a new electoral system, to rid the country of an undemocratic two-party system.

  2. Excellent post. To put that £140 million figure of Cameron’s in perspective, work on redeveloping one estate in King’s Lynn, Hillington Square, has stopped because the £10 million that was allowed has all gone.

  3. Or it could be Leeds City Council who thought a regeneration programme in East and South East Leeds would be a good idea. New housing would be available together with shops, libraries sports centers and all sorts of exciting things under the EASEL project
    After the demolition bit Bellway homes started to build and the only body to want to purchase the first 50 properties was…………Leeds City Council. It would have saved money to cut out the private developer.
    Now we have a good deal of unused scrubland, no add on amenities and less Council properties than we had and people moved all over the place for nothing.

  4. Gordan Brown and the Labour Party in 2000 ripped the heart out of creating stable families and giving the working classes a fair crack at property ownership by removing their mortgage interest tax deduction, yet allowing landlords to keep it, and increasing their other tax allowances and deductions (like a 10% wear and tear allowance). It was basically impossible for a whole generation to keep up, and property ownership fell from then, to now the lowest in decades.

    There appears to be no recognition by many people that millions and millions of new people arriving without millions and millions of new homes built, has ensured the death of social housing as a concept due to infinite demand, along with many other Labour ideals dying like private sector unions having any bargaining power with endless workers to choose from.

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