Analysis of UK National Housing Policy: Historical Context and Issues

This report delves into the historical trajectory and contemporary issues surrounding UK national housing policy. It begins with an overview of the historical development of housing in the UK, tracing its evolution from the Victorian era to the present day, highlighting key events such as the Rent Act of 1915, the Addison Act of 1919, and the impact of post-war initiatives and Thatcher-era policies. The report then identifies a critical housing policy issue: the long-term financial viability of specialized supported housing providers like My Space Housing Solutions, particularly in the context of welfare reforms, interest rate fluctuations, and regulatory compliance. The issue is underscored by the vulnerability of the tenants these providers serve. The government's policy responses, including financial support, regulatory oversight, and partnerships with local authorities and NHS, are examined. The report further analyzes the impact of these policies on organizations like My Space Housing Solutions and the broader practice of social housing, concluding with a discussion of the government's recent housing policy initiatives outlined in 'Planning for the Future'.

Housing Policy
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Table of Contents
Question. 3: Historical development of National Housing Policy...................................................3
Question. 4: Identified Housing Policy Issue..................................................................................4
Issue outlined..............................................................................................................................4
Why is it an issue?......................................................................................................................4
Policy response from government...............................................................................................5
Impact on organisation................................................................................................................5
Impact of national housing policy on practice............................................................................6
References........................................................................................................................................7
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Question. 3: Historical development of National Housing Policy
National Housing Policy of UK depends upon the past behaviour of UK housing and the
present trends on housing tenure, prices and availability of new houses. History of UK housing
can be traced back since Victorian age around Industrial Revolution to understand the heavy
influx of people into the cities to take up the jobs provided by new factories. This heavy influx
leads to development of slums for these workers by these factories. These slums were typically
two rooms with outdoor lavatories while middle class and business class had independent
houses. Social housing or housing provided by government was very little till around First World
War except the Workhouse. It was a refuge place to be used as last resort during World War. It
had very strict rules and often looked like prison and thus, were avoided by people as much as
possible (Lund, 2017).
In 1915, government brought "Rent Act" to limit the amount that private landlords could
charge from tenants to break free from 'laissez-faire' economics in housing of UK. However, in
1919, government brought "The Housing and Town Planning Act of 1919" also known as The
Addison Act, which is known as first government intervention at large-scale to build housing for
social use. It was aimed at building homes for war heroes and to achieve the measure, local
councils were provided with subsidies to build new houses. Cost of these new houses were to be
divided among tenants, the Treasury and local councils. Decade of 1930s saw growth in housing
around sub-urban areas near railway lines which ran into trouble due to Second World War
when, many houses were destroyed by bombing. Post war, government prioritised the
development of new homes and concept of 'prefab' housing was developed. New towns were
developed to help people move out of slums around 1950s and 1960s (History of UK Housing,
2018).
Around 1980s, government promoted low interest rates and increased availability of
mortgages to promote housing availability. Home-ownership was however, a key element in
Thatcher government's housing policy. Therefore, discounted price was offered on council
houses to promote home-ownership (Gravenhorst and et. al., 2019). It reduced rented properties
and increased home-ownership. With increase in number of household, demand increased in
manifolds which was not able to be fulfilled by housing supply, pushing prices higher. Situation
became more difficult around 2008 and providing affordable housing to all, became an issue for
the government. Housing market saw one of the biggest casualties due to global credit crunch.
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This made government's priority to rectify situations that was rendering lenders, builders and
buyers operate in the market. Government used schemes like Get Britain Building Scheme and
Builders Finance Fund to unlock stalled housing schemes (Policy paper 2010 to 2015
government policy: house building, 2015). New Home bonus were introduced and private
finance initiatives were taken to promote refurbishment and regeneration. It also brought a new
publication named as "Planning for the Future" in March 2020 which set out series of actions
that government has intended to take up as part of its Housing Policy and fulfilling its housing
supply commitment.
Question. 4: Identified Housing Policy Issue
Issue outlined
My Space Housing Solutions is a specialised supported housing provider. It is based on
lease-based model of housing supply wherein, it enters into long term lease arrangements with
investors and developers to deliver housing rather than acquiring or owning the houses directly
(Balchin and Rhoden, 2019). In addition, company provides specialised services and guidance to
tenants to make their independent stay successful and happy. Biggest issue that government finds
in supported housing providers is their concern about their long-term financial viability in case of
change in demand for the properties, welfare reforms, interest rates increment or changes in
public policy as well as the provisions that make them non-compliant to Social Housing
Regulatory Standards that possess an imminent risk to tenancies. These social housing business
models are generally non-profit oriented and therefore, have voids that are highly likely to pose
problems over the time such as less sources of raising finances, heavy dependencies on
developer and tenants due to business model, inability of tenants to pay more or being defaulter.
Why is it an issue?
Long-term financial viability of the supported housing provider is an issue as its untimely
failure or risk of failure can lead its tenants in lurch (McCrone and Stephens, 2017). Most of the
specialised supported housing providers provide housing to weaker as well as vulnerable sections
of the society such as old people, abandoned people, specially challenged people, etc.
Government of UK has set target to provide affordable housing to all and such vulnerable people
require extra security from government. Therefore, in case of failure of business model that is
supporting them, will give rise to various inconveniences to them.
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These business models are social housing business model and involves such customers
that are not only low on bargaining capacity but also on the affordability. Such people have
default risk which is not good from business point of view and failure of such business models is
not good for business ecosystem as well as housing ecosystem of the country. This model, if
successful, can inspire other entrepreneurs to experiment with developing other manners of
housing practices. Such development by private sector assist government in achieving ambitions
that it has targeted to provide affordable housing to all. Government is already facing under-
supply of housing and help by private sector enable it develop an ecosystem that is strong on
infrastructure and more resilient from the possible future changes and challenges (Ball, 2017).
Policy response from government
Government has set an ambitious target of increasing housing supply and to strengthen
everyone to avail a house. Though, it aims to increase number of house-owners in the country, it
is equally important to promote such businesses that provide temporary housing to those people
who cannot afford to buy a house. Specialised supported housing providers provide
accommodation services to vulnerable adults and is a business concept of providing social
housing to all those who need it. Therefore, government promotes such business and also allows
them to seek private investment so that they can support their business model. Nominations
agreement has been provided to individuals in agreement with a local authority or care providers
so that they can rent a home. These businesses are regulated by regulatory authorities like Care
Quality Commission or Regulator of Social Housing and help them with required guidances in
both legal and financial segments to ensure their success. Furthermore, these businesses provide
services to vulnerable houses and therefore, are required to work in cooperation with NHS as
well as local authorities responsible for Social Care and Housing. Local commissioners have
been appointed to work closely with housing associations to ensure that all financial risks are
identified, safety and precautionary measures are in place as well as necessary contingencies
have been identified and risk management plan has been in place (Byrne and Norris, 2018).
Impact on organisation
My Space Housing Solutions is a charitable housing association that aims to provide
housing for the most vulnerable members of the society like old people and those who are at the
risk of homelessness, when all the opportunities that they could have utilised, is exhausted. It
also provides social housing facilities to vulnerable adults with learning and physical disabilities,
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mental health problems, drugs and alcohol addictions, etc. It works as a trust and therefore,
requires help and support from the government and local authorities to keep its business model
sustainably going for a very long term. Government support enables organisation to perform its
social business in an effective manner (Bradshaw, 2016).
Further, My Space actively engages with developers, NHS, tenants and local authorities
together to develop housing solutions for required people by transforming their homes as care
centres. It also seeks help and advice from regulator to identify the issues that arise in front of it
as well as for possible contingencies, to know about the correct approach to the situation as well
as available solutions that they can adopt to tackle the situation and reduce any such risk that is
capable of providing them existential risk in the longer term.
Impact of national housing policy on practice
Government brought revised aims for housing policies of UK in March 2020 which was
title as Planning for the Future and for the specialised supported housing (SSP) providers, a
guidance was issued that was needed to be complied by the local government and NHS
commissioners (Gibb, 2016). My Space is a social housing associations and have rental revenue
model for providing lease-based models. National housing policy has three pillars - planning for
development, planning for beautiful and sustainable places and planning for infrastructure and
connected place. SSP providers are aimed in development of infrastructure and for this registered
providers are provided with all guidance and offers. This has helped business in developing a
strong base and balancing its business life cycle. Guidance offered by NHS and local authorities
has helped the company develop a resilient business model.
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References
Books and Journal
Balchin, P. and Rhoden, M., 2019. Housing policy: an introduction. Routledge.
Ball, M., 2017. Housing policy and economic power: the political economy of owner
occupation (Vol. 828). Routledge.
Bradshaw, J. ed., 2016. The Well-being of Children in the UK. Policy Press.
Byrne, M. and Norris, M., 2018. Procyclical social housing and the crisis of Irish housing policy:
Marketization, social housing, and the property boom and bust. Housing Policy
Debate, 28(1), pp.50-63.
Gibb, K., 2016. Housing Finance in the UK: an Introduction. Macmillan International Higher
Education.
Gravenhorst, K. and et. al., 2019. How and to what extent is health considered in English
housing policy: a thematic analysis of national Government housing policy documents
since 2010. The Lancet, 394, p.S43.
Lund, B., 2017. Understanding housing policy. Policy Press.
McCrone, G. and Stephens, M., 2017. Housing policy in Britain and Europe. Routledge.
Online
History of UK Housing. 2018. [Online]. Available
through:<https://www.economicshelp.org/blog/15814/housing/uk-housing-history/>
Policy paper 2010 to 2015 government policy: house building. 2015. [Online]. Available
through:<https://www.gov.uk/government/publications/2010-to-2015-government-
policy-house-building/2010-to-2015-government-policy-house-building>
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