Grand national strategy

Social housing has climbed up the political agenda. While we no longer have the targets
of 400,000 new council houses per year of the 1960s, we do have the recognition by government that areas of bad housing are also likely to be areas of high crime, poor education, high unemployment and bad health.

Government has identified the need for joined up thinking between the various departments so that a holistic approach is taken to achieve neighbourhood renewal and combat social exclusion. It has recognised that this is a 20-year project and is as relevant in London as it is in Newcastle or Plymouth.

In other words, this is not merely a regional and London-centric issue, as argued by Donald Hoodless on regional differences (Society, April 21). True, there are areas of low demand in the north where it would be wrong at the present time to build additional homes. Much publicised pictures of relatively new, good quality, housing association homes in the west end of Newcastle being demolished because of lack of demand do not tell the whole story and thus tend to mislead and can be mischievous. There is nothing wrong with the homes, but rather, severe and complex problems of social exclusion have led to stigmatisation and thus a refusal to live there - as is the case in other parts of the country. Indeed, stigmatisation of social housing applies in London but tenants have no other options.

The regional argument suggests that the particular problems of London may be met by building more (extremely expensive) new homes for rent. After all, without a high salary, an inheritance or a crippling mortgage, no one can buy in London or even parts of the south east. The argument therefore goes that we need far more properties for rent in London. There is no doubting the overall demand, increased by 55,000 asylum seekers, 160,000 people in temporary accommodation and a rising bed and breakfast bill for homeless families. The case for funding is proven.

However, the problem with the "build in London and the south- east only" lobby is that there is no national perspective or strategy. There is simply not the space to match the demand and not enough brown field sites - in this case redundant offices and the like - to build our way out of the accommodation crisis in parts of London, and to relieve London local authorities of their almost impossible task. The refurbishment needs and genuine waiting lists in much of the country north of Watford are also ignored.

The answer has to be a national housing policy, linked to effective regional economic policies which, in order to create social inclusion, provide good job opportunities outside London. The recently formed regional development agencies will play a key role, although ironically they have no housing powers but will need to work closely with housing funders and providers in a real example of partnership.


We are not talking of north v south, but of using the increased, but still limited, levels of public investment made available by the comprehensive spending review to provide attractive, good quality rented homes with public subsidy at affordable rents. This will enable people in low income jobs to avoid the poverty trap and
thus pay their rent from their income and help the taxpayer
by reducing the huge housing benefit bill.

As the Housing Corporation recognises, some public subsidy needs to be available for limited demolition to secure areas which might otherwise be at risk of disintegration. This, combined with subsidy to housing associations for new build and refurbishment, and linked to improvements in education, employment prospects, training, crime prevention and health provision,
is at the heart of the govern-ment's new deal for communities programme.

A national strategy will see almost half of the available Housing Corporation money being targeted at London, which recognises both demand and housing need. The balance is rightly allocated in consultation with local authorities and in conjunction with a regional policy.

? Malcolm Levi is chief executive of the Home Group, the second largest housing association in the UK, managing 40,000 homes.