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Right to Buy discount halved

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Right to Buy: Not what it was!

Right to Buy: Not what it was!

IT WAS ANNOUNCED last week that the Welsh Government had halved the maximum discount available under the Right to Buy scheme in an attempt to ‘protect the social housing stock’.

Earlier this year Communities Minister Lesley Griffiths announced her intention to end the scheme, which has been in existence since the early eighties when it was introduced by Michael Heseltine, Margaret Thatcher’s Environment Minister as part of the Housing Act (1980).

It is hard to think of a single policy which has been so divisive over the last three decades. It is, in effect, an ideological issue; with Free Market proponents on the one side advocating the power and responsibility taken from the state and given to the individual. Opposing this are critics who point to the drastic reduction in social housing over the time period, and the corresponding increases in homelessness and the use of public money to pay private landlords.

In Wales, 138,709 council-owned homes were sold under Right to Buy between 1981 and 2014 – leading to a reduction in the social housing available of 45 percent. Nationally 42% of the population lived in council housing in 1979 – by 2008 this had dropped to 12%.

The sale of council housing was originally meant to provide funds which would enable local authorities to pay back loans and build new properties. However, restrictions were placed on the proceeds of the sales, and councils found that they could not build any new social housing until these loans had been paid off. House building by local authorities in England and Wales dropped dramatically during the eighties, and has never recovered.

The Labour Government initially opposed the policy, but changed their position in 1985. Tony Blair’s government introduced caps on the discount available in areas short of social housing, and in 2005, the rules were changed to stop former tenants selling on the open market immediately after purchase. A five-year minimum residency before becoming eligible for the scheme was also introduced.

The policy was initially very popular among council tenants, and it was considered to have played a major role in Margaret Thatcher’s landslide victory of 1983, when in 1980 she had the lowest approval rating of any prime minister since records began.

However, repossession rates were notably higher than those for people taking out private mortgages, and homelessness across Great Britain trebled over the eighties. Another bone of contention for those opposed to Right to Buy concerned the burgeoning buy to let market, which in many cases saw ex-council housing stock rented out at considerably more than the local authority charged.

Because most of the council housing purchased was of good quality, and as a result of housing shortages leading to applicants being prioritized on the basis of need, many tenants found themselves living in areas of increasing social deprivation. Cuts to council maintenance budgets, and a dramatic increase in council rents contributed to this on a national level, and to some extent made Right to Buy a self-fulfilling prophecy for those who could afford it. By the mid-nineties, 95% of council tenants qualified for means-tested benefits.

There has been a rise in the number of social housing sales in Wales over the last five years, with 544 properties sold last year. In response to this, the maximum discount has been reduced to £8,000 from £16,000. Commenting on this, Lesley Griffiths AM said that “Right to Buy is depleting our social housing stock.

“This damaging policy is further increasing the pressure on our social housing supply and is forcing many vulnerable people to wait longer for a home,” she added.

“This is why the Welsh Government has taken decisive action to protect our social housing and make sure it is available for those who need it most. Today is a significant step towards our eventual goal of abolishing the Right to Buy and Right to Acquire in Wales.”

The Conservatives, unsurprisingly, disagree with this. Speaking earlier this year, Shadow Assembly Housing Minister Mark Isherwood said that the move ‘flies in the face of aspiration and ambition. It will limit supply and deny people in council properties the choice and power to buy their own home’.

Mr Isherwood announced the intention of the Welsh Conservatives to extend Right to Buy: “We would invest all the sales proceeds in new social and affordable housing to help tackle Labour’s housing supply crisis and take households off their record-breaking waiting lists,” he added.

“Scrapping the right to buy is further proof that it’s anti-aspiration; stuck in an ’80s socialist dogma where it believes the government knows best – not the individual. We must use every tool in the armoury to increase housing supply in order to make housing more affordable.”

Whether selling off social housing in order to make money which could potentially be used to build more is a viable solution to these ‘record-breaking waiting lists,’ or indeed whether the aforementioned 45 percent reduction in available social housing could have had anything to do with the current housing shortage remains unclear.

This also fails to take into consideration people living in social housing that is not covered by Right to Buy, and indeed the large number of people renting from private landlords, often because of a shortage of council housing.

In England, the Conservatives have announced proposals which would extend Right to Buy across all areas of social housing. However, the social housing provider would have to be compensated, thus meaning that the discounted price would have to cover the cost of a new equivalent house. This is meant to be funded through local authorities selling off their more expensive council houses when they become vacant, but research has shown that outside of London the figures often fail to add up.

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News

Too many children in Wales living in poverty – Lib Dems want action

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THIS week in the Senedd, the Welsh Liberal Democrats renewed their demands for the implementation of child poverty targets.

According to a report from the Bevan foundation, 29% of children living in Wales are currently experiencing poverty (an estimated 190,000 children).

The same report highlighted that the largest percentage of children living in poverty are from working households or in couple households.

The Welsh Lib Dems are now renewing calls for the Welsh Government to create a set of targets for reducing child poverty, which the party argues will allow for more accountability.

The party has previously called for the implementation of targets, citing recommendations from the Calling Time on Child Poverty Report published in November last year.

Commenting, the Leader of the Welsh Liberal Democrats Jane Dodds MS said: “The latest statistics on childhood poverty in Wales paints a very distressing image of families across the country struggling to make ends meet.

Over the course of the last six years, the proportion of children in poverty has skyrocketed. Fuelled by worsening economic conditions and a complete lack of action from both governments in Westminster and Cardiff Bay.

We cannot act complacent about these figures nor accept the clear lack of progress in fighting child poverty, behind each statistic is a child that the state has failed.

It remains painfully clear that the Welsh Government is failing to make any meaningful progress in this fight, which is why they must follow through with the implementation of clear set targets that will allow for further accountability.

We as a party have continuously called for the creation of these targets and we will not be silenced. For the sake of future generations we urge the Welsh Government to listen.”

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Education

Conservative calls for academies and free schools rejected by Senedd

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THE SENEDD has rejected calls to introduce free schools and academies after a report found major challenges in Wales’ education system.

Tom Giffard led a Conservative debate on educational attainment, warning that Wales is consistently at the bottom of UK-wide league tables.

The party’s new shadow education secretary pointed to an Institute for Fiscal Studies (IFS) report on education in Wales which found low outcomes and high levels of inequality.

Mr Giffard told the Senedd the IFS report highlights the pitfalls of the Welsh Government putting all its eggs in the basket of a skills-based approach.

Criticising a failure to measure skills inequalities and pupil progress, he stressed that Wales’ lower performance is due to policy and approach rather than funding or the pandemic.

He said: “It seems the Welsh Government relies on Pisa results to tell the story but then, when those same results are all too disappointing, they are dismissed in equal measure.”

Mr Giffard, who previously worked in a primary school, said declines in Pisa results can be observed in almost every country that has adopted a skills-based approach.

Raising concerns about disappointing Pisa results, the South Wales West MS pointed out that Wales saw the lowest scores in the UK for every subject.

Heledd Fychan, Plaid Cymru’s shadow education secretary, warned that Wales’ schools are understaffed and facing difficult decisions due to budgets being at breaking point.

She criticised implementation of the Welsh Government’s additional learning needs (ALN) reforms, saying schools cannot realise the aims without the budget to bring them to life.

Ms Fychan said Plaid Cymru agreed with much of the Tory motion but her party would not support calls for free schools and academies.

Sam Rowlands described the IFS report as damning, warning that the Welsh Government’s education reforms have been disastrous and have widened inequality.

The Tory MS claimed the reforms are systematically holding back disadvantaged children, saying: “The most remarkable fact is that the performance of disadvantaged children in England is either above or similar to the average for all children in Wales.”

Mr Rowlands added: “The poorest in England’s schools are doing the same or better than the Welsh average, thanks to ambition, the academies and free schools.”

Samuel Kurtz, a fellow Tory, said free schools and academies have driven up standards in England as he argued a Wales roll-out provides an opportunity to improve outcomes.

James Evans, the Conservative MS for Brecon and Radnorshire, highlighted the party’s pledge to get 5,000 more teachers into Wales’ classrooms.

Buffy Williams, the newly elected chair of the Senedd’s education committee, said Wales is undergoing a profound transformation propelled by ALN and curriculum reforms.

The Labour MS for Rhondda stressed the importance of listening to teachers and allowing ample time for the reforms to take root in classrooms across Wales.

Altaf Hussain recounted a conversation he had this week with a headteacher at one of the largest schools in his South Wales West region.

The Conservative said: “The major improvements they have been delivering to attainment and addressing behavioural issues are all at risk because of cuts to funding.

“Vital work undertaken to improve the lives of young people with additional needs could be halted because they cannot afford to continue employing the support workers.”

Lynne Neagle recognised the scale and seriousness of work still ahead to improve Wales’ education system, stressing: “I am not, in any way, complacent about that task.”

Wales’ newly appointed education secretary, who takes over from Jeremy Miles, said sustained improvement in attainment will be among her top priorities.

She told the chamber: “My early focus has been to listen closely to schools and where it is clear that schools seek more scaffolding.”

Ms Neagle said the Welsh Government will work with trade unions and employers to reduce workload and eliminate unnecessary red tape.

The Conservative motion was voted down, 14-35, following the debate on April 24. The motion as amended by the Welsh Government was agreed, 26-23.

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Climate

£1m turbine application to be decided by all councillors at County Hall

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A TWICE-BACKED £1m scheme for a “20-storey-high” wind turbine at a Pembrokeshire mansion will have to be decided by all councillors.

Mr and Mrs Glen Peters of Western Solar Ltd are seeking permission for a single turbine on land near the Grade II-listed Rhosygilwen Mansion, which includes an arts and functions building known as Neuaddydderwen.

Members of the April meeting of Pembrokeshire County Council’s planning committee were recommended to refuse the scheme, despite backing it at their March meeting.

This backing meant the application returned to the April meeting for ratification after a ‘cooling off’ period; the application having been deferred at the January meeting pending a site visit.

It was initially recommended for refusal in January for several reasons, including potential harm to the setting of the Grade-II-listed house and grounds, and fears of threats to the safe operation of West Wales Airport at Aberporth in neighbouring Ceredigion, some 9.5 kilometres away.

The last concern was later withdrawn.

In papers ahead of the April meeting, officers, again recommending refusal, have said the scheme “would not protect or enhance the setting [of Rhosygilwen] but rather would result in significant harm to this interest of acknowledged importance”.

They have also warned any backing of the scheme against policy recommendations could set a precedent for similar developments.

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