HJ Exchange
An unsocial environment for social housing
02 I 07 I 10
Peter Griffiths, Chief
Executive of Principality Building Society, has addressed
Wales’ premier business networking event, the Hugh James Exchange,
on the major challenges for the social housing sector from both
government and markets.
Social housing in Wales has had important news
this week as the Wales Office has said that it will introduce the
Housing and Local Government LCO to Parliament without amendment to
its form as approved by the National Assembly for Wales.
However, despite legislative good intentions,
Peter Griffiths said in his speech at the Hugh James Exchange on 30
June that the housing recovery is stalling with upstream indicators
suggesting that we will see flat demand – while the market is up
from the lows of 2009, it faces an uncertain future.
Peter Griffiths set out his view that a major
cause of these difficulties is incoherent and contradictory
regulatory and government policy regarding capital and liquidity
requirements for Banks and Building Societies. These
requirements are limiting the availability of cash in mortgage
markets and slowing economic recovery.
He added that tax and benefit cuts announced
under recent austerity measures by the new Westminster government
will affect the affordability of housing and have a knock-on effect
on the social housing market. Lenders’ heavy emphasis on low
loan-to-value lending could imply significantly fewer new loans
especially in the first-time-buyer market. This could have a
negative impact on accessibility of private housing and in turn
bolster a growing need for social housing at a time when that
sector faces its own funding difficulties.
Additionally, the
Principality’s Chief Executive described how the housing market
will face a significant threat as UK Government funding schemes
expire in 2011-2014.
As well as a keynote speech by Peter
Griffiths, a lively panel discussion and audience Question and
Answer session took place, with the panel members being:
- Nick Bennett, Chief Executive of Community Housing
Cymru
- Bob Phillips, Development Director at Barratt Homes
- David Roberts, Partner at Hugh James
- Chris O’Meara, Chief Executive at Cadwyn Housing
Association
Questions ranged from investor behaviour, to
the impact of sustainable policy, demographic changes having
implications for social housing provision, funding and the planning
process.
The overriding view, with a degree of
consensus from the panel, was that while the climate is undoubtedly
a tough one, there are opportunities for new ways of working.
In his presentation, Peter Griffiths had
raised the question – ‘Where is housing’s white knight?’ The clear
answer was, simply, that there isn’t one. ‘Social landlords can’t
solve the problem on their own,” he said. And the panel, from their
different perspectives, agreed that greater collaboration across
the sectors is vital.
Chair Noreen Bray took a straw poll of the
125-strong audience at the end of the session – with votes being
cast under ‘optimistic’ and ‘realistic’ banners rather than
pessimistic.