WIREDGOV

Councils are focused on building new homes, but should give more attention to making the most of existing houses and flats in their area. This is one of the findings in a new national report by public spending watchdog the Audit Commission, which says that one in three councils struggles to understand the housing market on its own doorstep.

'Building better lives', published today, finds that councils feel pressured into focusing on building brand new housing - 94 per cent of areas have prioritised new and/or affordable housing targets in their local area agreements, but fewer than a third prioritised targets relating to their existing housing stock, despite the financial savings, environmental improvements and social benefits of doing so.

The report finds that if all councils thought of housing more broadly they could do more to combat poverty, ill-health, educational under-achievement and help strengthen their local communities.

The recession makes a strategic view of housing all the more important. There have already been 24,100 home repossessions in the first six months of 2009, more than twice the number in the whole of 2005. Mortgage arrears have risen 50 per cent since 2008, and mortgage approvals are down by a third. New development starts have dropped by two thirds, and none of the national targets for building new or affordable housing set in 2007 will be met.

Chairman of the Audit Commission Michael O'Higgins says: 'Councils aspire to shape the communities in their area for the better. My experience as Chairman of youth homelessness charity 'Centrepoint' has shown me that homelessness and poor housing blight the lives of those who experience them, but there are great benefits to councils taking a more strategic approach.

 

'In tougher times, it is all the more important that councils think strategically and creatively about housing and take their housing responsibilities seriously. This report encourages councils to do that and has good examples of councils that have made a real difference to their residents without spending large sums of money.'

Councils used to manage substantial housing stocks, but since 1979 their role has declined with the introduction of right to buy, stock transfer and new social housing being provided by housing associations. Despite this, councils are still local housing authorities with statutory duties to make sure housing needs and problems are being addressed. 'Building better lives' says that these duties now form the basis of a broader strategic housing role, meeting the future needs of the local economy, and supporting each area's Sustainable Community Strategy. Comprehensive Area Assessment will also help to assess how joined up and strategic housing policies are.

The report shows that taking a strategic view of an area's housing is not only critical to its economy, education, public health and community cohesion, but across all public service areas it can be a major cost saver:

• £1 spent on housing support for a vulnerable person saves nearly £2 in health services, tenancy failure, crime and residential care
• Spending as little as £2,000 on adaptations to help an elderly person stay in their own home can save £6,000 a year on care
• If only 5 per cent of empty homes could be brought back into use, councils could cut their annual homelessness costs by £½bn

Without proper housing strategies in place, the report warns, local areas may also miss out on funding and support from the Homes and Communities Agency, and fail to influence markets and funding flows, as well as to deliver services.

The Audit Commission's research found a variable picture nationally. Three out of four housing authorities inspected since 2000 rate only as fair or poor, and only one of the 139 councils inspected rated as excellent. Even well-regarded councils described their own housing performance as mixed. Few councils recognise how a housing strategy can meet objectives beyond housing, or engage with a range of delivery partners, and after two years of a government-funded  programme less than half of District Councils state they have the skills they need.

However, some housing authorities have shown the way, and others can follow their lead. Among the examples given in the report - Thanet has used supplementary planning policy to restrict the development of one bedroom flats in Cliftonville West, part of a long term effort to reduce density. It has also worked jointly with Kent County Council and neighbouring authorities on the 'No Use Empty' campaign designed to reduce the number of empty homes in the county. To date, 530 have been brought back into use.

Sheffield City Council targeted an empty property hotspot and brought twelve properties back into use on one street, improved a run down area and provided additional housing. No financial assistance was provided, just education, advice, encouragement and, in some cases, threat of enforcement action.

'Building better lives' asks the government to reduce the confusing number of recent housing crunch-busting initiatives and clarify their objectives, eligibility and scope, and to stress the importance of strategic housing in ministerial speeches. It also calls for national and local government to work with professional bodies on improving resources and skills.

Notes for editors

1. The report 'Building better lives' will be backed up by a wide range of practical materials to help councils and their partners improve delivery of housing objectives, information on housing needs and the market, partnership working arrangements, and responses to the impact of the recession.
2. The Audit Commission is an independent watchdog, driving economy, efficiency and effectiveness in local public services to deliver better outcomes for everyone. Our work across local government, health, housing, community safety and fire and rescue services means that we have a unique perspective. We promote value for money for taxpayers, auditing the £200 billion spent by 11,000 local public bodies. As a force for improvement, we work in partnership to assess local public services and make practical recommendations for promoting a better quality of life for local people.

For further information please contact:

Mark Nicholson
Media Relations Manager

Audit Commission
Millbank Tower, London SW1P 4HQ

Direct line: 0844 798 2135 or 020 7166 2135
Mobile: 07813 038132
24hr Press line: 0844 798 2128

E-mail m-nicholson@audit-commission.gov.uk