Policy Press
Fourteen Restructuring social housing rents
Abstract
The system of finance and subsidy for social housing in the UK has been a recurrent source of concern and not a little exasperation among politicians, commentators and practitioners. In 1974 Anthony Crosland famously described the system as a ‘dog’s breakfast’. Subsequent policy directions and legislative changes have transformed the way the system operates, but have not set the system on clearer, more coherent or more widely accepted foundations.
At a more detailed level, the methods that individual social landlords use to set the rents for their properties change over time. Two decades ago, the majority of local authorities used a method based on the gross values of each property1. By the mid-1990s the most popular systems were points-based and the use of such systems continued to spread during the late 1990s (Walker and Marsh, 1995, 2000). The use of points systems is also seen as good practice in the Registered Social Landlord (RSL) sector, although some smaller RSLs operate relatively ad hoc systems. A small number of local authorities still use systems based on 1973 Fair Rents, while others base their rents on capital values or use a formula-based method. In some authorities current staff are unable to articulate the rationale underpinning long-standing methods of setting rents.
The need for change in rent setting method is typically justified with reference to the anomalies in pricing generated by existing systems. Anomalies can arise because existing methods become increasingly out of step with contemporary perceptions of the desirability or ‘value’ of different types of dwelling or different locations.
Abstract
The system of finance and subsidy for social housing in the UK has been a recurrent source of concern and not a little exasperation among politicians, commentators and practitioners. In 1974 Anthony Crosland famously described the system as a ‘dog’s breakfast’. Subsequent policy directions and legislative changes have transformed the way the system operates, but have not set the system on clearer, more coherent or more widely accepted foundations.
At a more detailed level, the methods that individual social landlords use to set the rents for their properties change over time. Two decades ago, the majority of local authorities used a method based on the gross values of each property1. By the mid-1990s the most popular systems were points-based and the use of such systems continued to spread during the late 1990s (Walker and Marsh, 1995, 2000). The use of points systems is also seen as good practice in the Registered Social Landlord (RSL) sector, although some smaller RSLs operate relatively ad hoc systems. A small number of local authorities still use systems based on 1973 Fair Rents, while others base their rents on capital values or use a formula-based method. In some authorities current staff are unable to articulate the rationale underpinning long-standing methods of setting rents.
The need for change in rent setting method is typically justified with reference to the anomalies in pricing generated by existing systems. Anomalies can arise because existing methods become increasingly out of step with contemporary perceptions of the desirability or ‘value’ of different types of dwelling or different locations.
Chapters in this book
- Front Matter i
- Contents iii
- Notes on contributors v
- Acknowledgements ix
- Analysing New Labour housing policy 1
- New Labour transfers 29
- Stock transfer 47
- Housing standards in the private rented sector and the three Rs: regulation, responsibility and rights 73
- Housing standards in the private sector 93
- Allocating housing – or ‘letting’ people choose? 113
- From allocations to lettings: sea change or more of the same? 133
- Two steps forward for tenants? 157
- Developments in tenant participation: accounting for growth 179
- Managing anti-social behaviour – inclusion or exclusion? 201
- Anti-social behaviour and housing – can law be the answer? 221
- From housing management to the management of housing: the challenge of Best Value 241
- Registered Social Landlords, Best Value and the changing organisation and provision of social housing: a perspective from housing studies 263
- Restructuring social housing rents 285
- The politicalisation of social rents 305
- Housing Benefit 323
- Helping with housing costs? Unravelling the political economy of personal subsidy 343
- Making connections 363
- Index 385
Chapters in this book
- Front Matter i
- Contents iii
- Notes on contributors v
- Acknowledgements ix
- Analysing New Labour housing policy 1
- New Labour transfers 29
- Stock transfer 47
- Housing standards in the private rented sector and the three Rs: regulation, responsibility and rights 73
- Housing standards in the private sector 93
- Allocating housing – or ‘letting’ people choose? 113
- From allocations to lettings: sea change or more of the same? 133
- Two steps forward for tenants? 157
- Developments in tenant participation: accounting for growth 179
- Managing anti-social behaviour – inclusion or exclusion? 201
- Anti-social behaviour and housing – can law be the answer? 221
- From housing management to the management of housing: the challenge of Best Value 241
- Registered Social Landlords, Best Value and the changing organisation and provision of social housing: a perspective from housing studies 263
- Restructuring social housing rents 285
- The politicalisation of social rents 305
- Housing Benefit 323
- Helping with housing costs? Unravelling the political economy of personal subsidy 343
- Making connections 363
- Index 385
