When in 2003 the government put forward
proposals to create more affordable housing,
Jim Knight wrote to the Deputy Prime Minister
urging him to include Dorset in any new
affordable housing schemes.
Later that year Jim represented Dorset in
a delegation of Labour MPs from the South
West seeing Keith Hill, Minister for Housing,
in the light of the findings of the recent
Rowntree report - which exposed the extent
of the problem; in Purbeck for instance
you need to earn 5.58 times the average
salary to buy an averagely-priced house,
in an area where wages are among the lowest
in the country. Jim wished to raise Dorset's
particular problems and received an encouraging
response. "The Minister stressed that
the South West had received a 30% increase
in Government funding for social housing
this year, but promised, in the light of
the Rowntree report's findings, to look
further at how Government can help."
Jim continued to support and campaign for
the proposal to give local councils the
option of reducing or removing the current
50 per cent discount on second homes and
properties left empty for more than six
months. When the final recommendations were
reported on, a change had been made to reduce
the 50% discount to 10%, thus allowing councils
to raise much-needed extra money.
On 18th July Jim gave a speech at the AGM
of Wareham CAB on rural issues including
affordable housing (for relevant excerpts
see below)and throughout September 2003
he spoke extensively on the issue during
the relevant Adjournment Debate in Parliament
(for further details please go to the Work
in Parliament page, click under Hansard
Search - Housing [South West], September
2003 Column 61WH).
In April 2004 Jim visited Poundbury, Dorchester,
with Prince Charles to discuss the role
of Poundbury as a model for sustainable
housing development. The proportion of Poundbury
dedicated to affordable housing is rising
from 20% to 35%.
Within the next month, Jim is putting in
a Policy Submission to Treasury and Housing
Ministers, with ideas about tackling the
problem of affordable housing. He is also
participating in the Labour Party Policy
Commission, which will agree on Housing
and Rural Policy for the Party's next election
manifesto.
Extracts from speech to Wareham CAB,
18 July 2003
"(Affordable housing)is the biggest
issue for most of my constituents.
If you are lucky enough, like me, to be
in a decent job and own my own home, albeit
with a large mortgage, then I only observe
the problem. In fact I benefit from it.
In the last two years I have seen the value
of my property in Weymouth increase by 50%.
That is great for those of us who are not
deprived and who own their own homes. But
what of the rest?
Dorset County Council recently commissioned
a residents survey carried out by MORI.
It found that 30% though the lack of affordable
housing was the biggest issue. It also found
that almost half of Dorset families had
a household income of less than £15,000
per year. £15,000 against a price
of £155,000 for a 4/5 room property.
This is not sustainable anywhere in Dorset
but particularly not in our rural areas.
How can we sustain our rural communities
if our young people are unable to live in
them?
Average wages in Dorset are the same as
those in County Durham. Our tourism economy
does not pay well, nor does the care sector,
nor does agriculture. The high levels of
seasonal employment mean that our unemployment
statistics are misleading, with unemployment
high in the winter months – when ironically
the housing supply problem is eased slightly
with some holiday lets and caravans becoming
available. This low wage economy contrasts
completely with the housing market.
We are lucky to live in a beautiful environment.
We are a mile or so from Britain’s
most biodiverse point. We have world heritage
status. All of this crucial to our tourist
economy and in growing the seaside trade
to higher value and longer seasons by encouraging
more leisure tourism with walkers, sailors
and divers.
But that precious environment is also driving
up the house prices.
This is a very popular place to retire
to. The figure of £15,000 household
income I referred to earlier is to some
extent accounted for by the larger than
average number of retired households who
have relatively low incomes, but lower outgoings.
But not all pensioners are badly off. True
at the moment the collapse of the stock
market has hit most hard as private pensions
have taken a serious blow. Low interest
rates mean low income from savings and meanwhile
inflation in things like council tax have
hit those on fixed incomes hard. But nevertheless
the spending power of those retiring here
has combined with those buying holiday homes
to create a high demand for our lovely houses
in beautiful villages.
Naturally we want to protect that environment
and so we have not wanted to build more
houses to meet that demand and the prices
have rocketed. This movement in the private
sector coincides with problems in the supply
of social housing. The late 80’s and
90’s saw the sell off of council houses
through the right to buy. This was not accompanied
by any significant investment in new build.
When I visited Church Knowle recently the
Chairman of the Parish Council told me that
they are down to 3 out of 150 houses that
were owned by social landlords. As we drove
around he pointed out all of the others
that used to be council houses until they
were sold. Lovely houses – at lovely
prices.
The same story is told across the district.
Today housing associations (virtually the
only providers of new affordable housing)
are only producing at most a third of the
new homes the government have asked them
to in the inevitable regional targets.
And I have to say that in my opinion the
proposal from my political opponents who
introduced the right to buy for council
tenants, to extend the same right to housing
association tenants will only worsen the
situation…
…The vision has to be that people
in social housing, in low cost rented housing,
should have quality and choice. One of the
worst things about the number of housing
cases I deal with is that I know if I can
help influence the council to get them housed
then it at the expense of the next deserving
case. I know that when a young family comes
to see me faced with eviction they are faced
with bed and breakfast unless they are very
lucky. Bed and breakfast is expensive and
wholly inappropriate – but the council
has no choice. Then once they are housed
they have to take what they are offered.
Regardless of schooling, work, transport
links, condition of the property they have
no choice. And once moved in the possibility
of transfer is very slim indeed.
If a neighbour moved in next to me that
I couldn’t get on with I might be able
to buy somewhere else and move out of the
problem. I have a choice. Our social housing
tenants, by and large, don’t have that
choice…
… we are a very long way from delivering
that vision of choice and quality…
… in the end we need more affordable
homes to buy as well as to rent.
You will know that the Government has legislated
to end the 50% discount for second homes
owners. Councils will soon be able to charge
90% of the full rate. I hope this will achieve
two things – check the boom in holiday
home ownership that has done so much to
inflate house prices, and release money
for investment in affordable housing and
tackling rural deprivation.
On the latter point I would point out that
there appears to be a bit of a turf war
going on between county and district councils
as to who gets the money. With some suggesting
it should just be used to reduce the council
tax.
I would urge anyone concerned about this
to lobby their councillor about it –
particularly those who are both county and
district councillors. We do need more subsidy
in the system.
I was part of delegation of Labour MPs
from the South West who had a meeting with
the Housing minister, Keith Hill, on this
subject last week.
He told us that our region has had a 30%
increase in funding for this in this financial
year. He also assured us that the recent
Rowntree report that highlighted the problem
for the South West, and Purbeck in particular,
was forcing them to look again at their
priorities.
The Sustainable Communities Plan, published
in February 2003, set out the government’s
vision for housing and the level of public
financing for the development of new and
refurbished affordable social housing over
the next three years. £22bn has been
earmarked but most of this is going to London
and the South East. Keith assured us that
he would look at this again in the light
of the Rowntree report.
I will be going back having secured a second
meeting with Keith Hill for him to meet
representatives from the Dorset Chief Housing
Officers Group to discuss Dorset’s
problems in particular.
Beyond money we also need to look at planning.
We have a huge problem here with finding
appropriate sites to build on. Holton Heath
has been refused and I am hopeful that Redbridge
Pit in the west of the district will also
be refused. We don’t have many brownfield
sites to develop and building new village
and creating brand new communities doesn’t
do anything for the decline of our rural
villages.
We need to make sure that where development
is taking place it includes a high proportion
of affordable housing – too many developers
are putting in applications at just below
the threshold that would then require 25%
of the homes to be 'affordable'.
We must be considering reducing the threshold
and increasing the percentage.
And we must also look at using rural exception
sites more.
A couple of years ago a new rural housing
scheme was opened in Corfe Castle, funded
by a government rural housing grant, but
developed by the local community housing
group.
We have just seen a successful development
at Worth Matravers by a housing association
of a limited number of affordable homes
on the edge of the village for local people.
This must be the way forward.
It is possible to specify in the conveyancing
that the home can only be sold to someone
with a local connection. I am told you can
even state that it can only be sold at a
price in line with inflation as measured
by the retail price index. These must all
be pursued so we build local affordable
homes not investments.
I am currently in discussion with the National
Trust and Purbeck about finding a site in
Studland. Similarly I have written to all
of the local parish councils to ask them
what social housing need they have identified
and if there are rural exception sites that
they would find acceptable.
I am determined that we do tackle this
problem.
There is no easy solution, no magic wand.
I believe we will see more money to deal
with it from Government. I believe they
are listening and there are some advantages
in having a government MP in a highly marginal
seat!
I know that the local council are prioritising
the problem. If we all work together across
councils and parties we can make a difference.
We must be imaginative. We must look at
best practice elsewhere. And then ultimately
perhaps fulfil the dream of sustainable
rural communities where everyone, even the
most deprived, have a choice."
