Daily Updates: Wednesday 12 March 2008
 
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Paul Diggory or Arnie?
CIH Presidential Address

Speaker:
Paul Diggory, President CIH

Good morning colleagues. Well when I spoke on this platform at last year’s Conference, I said I’d be back and like Arnie, here I am. Not that I am in any way trying to compare the role of CIH President to that of a cybernetic terminator sent back from the future or, even more ridiculously, to that of the Governor of California.

Looking back at the weekend’s rugby results it seems like a good time to tell you that at the Welsh conference last year I was introduced as ‘an honorary Welshman’, so congratulations on Scotland’s victory at the weekend!

Well, what an amazing last 12 months it’s been. At the start of 2007 we would probably have settled for just one of the major reforms from the last year but instead we’ve witnessed a Local Government White Paper, the John Hills’ Review, OFTENANT, the Firm Foundations Discussion paper with a whole raft of proposals including the abolition of Communities Scotland (isn’t it ironic that they’re now setting up it’s equivalent in England – the new Homes and Communities Agency). We’ve also had the Essex review of regulation in Wales – together with plans for a new national housing strategy there, the restoration of the Northern Ireland Assembly and its recent budget announcement to build thousands of new homes, the Housing Green Paper in England, John Calcutt’s Review – and, of course, a Housing and Regeneration Bill that is currently going through Westminster. Otherwise there’s not much happening really.

Now if you’re an optimist you’ll see our glass as half full. If you’re a pessimist you’ll see it as half empty. You might even be an engineer, in which case you’ll see the glass as being twice as big as it needs to be.
There’s no doubt that, however you see it, it’s going to be a challenging time for all of us. In the words of the philosopher Homer…Homer Simpson that is: “You don’t get anything in this life without hard work. Now shut up, they’re about to announce the lottery numbers!

One of the changes with the most potential to have a major impact on service delivery is the introduction of OFTENANT, with its promise of greater emphasis on, and involvement of, tenants. It will hopefully move inspection in the direction of more customer-focused organisations.

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Consensus and crisis

All this activity is testament to the powerful consensus that has emerged around the need for an adequate supply of affordable housing.

This is because we have a crisis in access to affordable housing. A crisis that has got much worse over the last few years, that is now touching a far wider group of people across the whole of the UK, and one that is likely to have profound implications for how people live in the first half of this 21st century. Despite all our efforts, the lack of affordable housing means that:

• There are over 1.6 million people on a waiting list for a home,
• There are more than 100,000 homeless households spending tonight in temporary accommodation; and
• We still have nurses, teachers and police officers, to name just a few who can’t take up employment opportunities because they can’t afford anywhere to live.

Whatever the cause, the lack of decent, affordable housing can ruin life chances and undermine the sustainability of our communities – all of which means that we have to exploit the current political interest in housing to deliver real and lasting change. Our economic success in a global economy depends on us doing so – as does our ability to build a healthy, well educated and cohesive society.

One of the great causes of our time


And Gordon Brown knows this too. It might be different for you, but for many of us in England and Wales, July 11th 2007 is one of those dates that we’ll remember for many years. Why? Well, July 11th last year was when our new Prime Minister promised to make housing one of the great causes of our time. On the one hand it was fantastic to see such a high level commitment to housing – on the other hand, housing’s elevation over other important areas of government work brought home the severity of the challenges we face.

The good news is, that on the back of this Prime Ministerial pledge, there are now ambitious plans for the biggest house building programme in my career – and over 8 billion pounds of investment to deliver it. Excellent news but let’s not be under any illusions about the delivery challenges ahead – not least in the context of the current economic uncertainty. Much has been said about these challenges but for me the 5 biggest are capacity, planning, land availability, NIMBYISM and mix. Housing growth remains stubbornly as a bad news story – whilst we continue to build the vast majority of social housing in areas that are already deprived. Bevan’s famous “living tapestry” concept may have entered housing’s lexicon but most of us still live in essentially mono-tenure estates.

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Capacity

However I do have a concern about capacity – capacity in terms of the availability of skilled workers, of labourers and of the supply of construction materials. Levering up housing construction and meeting all the Housing Quality Standards may well add pressure to the existing capacity and this could get worse with forthcoming major projects such as the Olympic Games in London and the Commonwealth Games in Glasgow. The CIH believes that the Scottish Government should undertake a review of the construction industry capacity similar to that already carried out in England. This could help ensure that the construction industry meets the challenges faced without further driving up costs in the sector.

All Pain No Gain

Hopefully some of you will have seen All Pain No Gain produced for CIH in Scotland by Newhaven Research – and no, it’s not the Institute’s latest guide to bondage. What this is intended to do is to contribute to the important debate of ensuring that the planning system and private developers are able to contribute much needed affordable housing without racking up costs and creating lengthy delays. It suggests that the current Affordable Housing Policy and Section 75 agreements approach may not deliver very much for the future and that they are lengthy and costly processes.

The report suggests, and the CIH agrees, that now is the time to open a debate on introducing a tariff system for developments. Local authorities would identify their future infrastructure needs, including for affordable housing, cost these and then levy a set charge on developers to help meet these needs. The CIH fed the report into the Housing Supply Task Force and hopefully it, and the Government, will take forward an appraisal of such an approach to deliver more affordable housing. If you want to hear more about the report and its findings, the breakout Getting More Affordable Homes from Developers on Thursday is for you. And the keynote panel session also on Thursday Unlocking Land for Affordable Housing will no doubt touch on the issues raised in All Pain No Gain.

Existing housing and reform agenda


There have been times in the last 12 months when we at CIH felt that talking about the problems with our existing housing stock was something you just didn’t do in polite company. Having supported John Hills in his review – and having championed some radical thinking around the future of social housing across the UK – we’re therefore delighted to see some recent progress around the reform agenda. At its best social housing transforms lives – at its worst it fails to create a platform for aspiration and opportunity and constitutes the equivalent of feeding your kids a diet of turkey twizzlers. On our reform wish list is the need for far better tenure-neutral housing advice; flexible tenure products that are designed primarily with customers in mind, programmes that allow tenants to build up a financial stake in the rising value of their home, housing benefit reform to address worklessness, and, last but by no means least, a political commitment to tackle the CO2 emissions from existing not just new homes.

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Directions of travel
Looking further ahead 3 broad, and inter-linked directions of travel seem apparent.

The first is about the mixed economy of providers that will be needed to deliver this massive agenda. In the old days we understood the differences between renting and owning; between councils, housing associations and volume builders. The future is going to be more blurred. Blurred for customers who face a housing career based on a more flexible approach to tenure. And blurred too for providers. What will distinguish us going forward is not our different institutional structures but our ability to use our negotiating skills to put together added value partnerships that work. We will be judged not just on the success of our individual organisations, but on our contribution to successful place-making and neighbourhood regeneration.

The second is about the need for new, genuinely consumer, rather than provider, driven businesses. In a world of increasingly well-informed and demanding customers with stronger voices and more choice, customer insight and bespoke menus of services will become ever-more business critical. Unfortunately we continue to ask what people think of what we give them, rather than asking what they want. And, it’s still the case that your supermarket probably knows more about you than many of us know about our customers.

Thirdly, Westminster is clearly interested in housing as a platform for social mobility – and it has CIH’s full support. Where you live can literally be bad for you – knocking years off your life expectancy. But it doesn’t have to be like that – and thanks to the work of people here – it often isn’t. Did you know that 84% of the people without bank accounts live in social housing? Not a great statistic but one the CIH is tackling head on by working in partnership with the Financial Services Authority and Department for Works and Pensions, to support landlords to build the financial capacity of some of their poorest citizens. This is one simple but effective example of the added value work of housing organisations.

The role of the CIH

Across most of the UK, we now have in place a robust national policy framework, effective institutional arrangements and the necessary funding to make change happen. Now it’s up to us. As the leaders in our sector, more is expected of us than ever before – and it’s therefore never been more important for CIH to be on top of our game.

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CIH really exists to do just one thing – to help the people involved in delivering the housing and community agenda to be the very best they can be. We take this responsibility very seriously – and last year, we worked harder than we ever have before to support the sector to deliver. From our cutting edge regeneration masterclass to our on-line Housing Manual; from e-learning modules to bespoke organisational development programmes; from our policy seminars to CIH Level 2 Certificate in Housing by attendance at training courses; from our skills courses to our training on the National Accommodation Strategy for Sex Offenders; from national policy debates to Board member recruitment – CIH is helping improve individual and organisational performance across the whole sector.

Of course you can’t stand still and so we can’t either – and we have some more ambitious plans for 2008:

• The CIH in Scotland is going to carry out some research into the learning, development and skills opportunities currently available to housing staff, and those required to equip them for the future. I’ll certainly be interested in the results from that exercise.
• We have just introduced a new membership rate designed specifically for tenants.
• In February, our Council approved a plan to launch a new programme called Active Learning for Residents to formally accredit the learning gained by tenants.
• Perhaps most exciting of all, CIH is now working with partner organisations across the UK to form new strategic alliances offering a bespoke package of professional support services and membership benefits. Wakefield Housing Group is the first organisation to work with us in this way – the first of many I believe.

Thank you for listening, thank you for inviting me back and I wish you well in meeting the challenges that 2008 will bring.

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