Former Liberal Democrat leader says the numbers fall far short of what is needed to address England's housing crisis
Vince Cable (pictured top), chair of the independent Housing Policy and Delivery Oversight Committee, has cautioned against overstating the significance of the government's latest social housing announcement, warning that the scale of new supply remains negligible relative to the size of the problem.
The government confirmed the initial allocation of nearly £10 billion from its £39 billion Social and Affordable Housing Programme (SAHP) on Wednesday, earmarking funding for more than 70,000 homes across Greater Manchester, the West Midlands, West Yorkshire, South Yorkshire, North East England, and Liverpool. A further £6 billion had previously been announced for London, with more than £16 billion still to be allocated.
Cable acknowledged the economic benefits of increased construction activity, but argued that the headline figures disguise a much more modest reality when examined closely.
"Of course, it's good that Andy Burnham is announcing concrete steps to improve the housing stock and reduce the terrible levels of accommodation for so many families," he said. "Building is not just good for families, it's good for the economy. Construction workers employed along with suppliers, surveyors, lawyers, estate agents and the myriad of businesses that are involved in fitting out homes. Income earned helps the tax paid and the public finances."
He was less positive on the scale of the commitment, however. "Let's not get carried away," Cable said. "The numbers sound big until you analyse them. The new homes could amount to (broadly) 7,000 a year over the 10-year period of the funds. That is compared to more than 30.4 million homes, which is about 0.023 of the total. And 0.23% of the population is about 16,000 people. Meanwhile the population increases by many times more than that each year. It's a single drop of rain on a parched field, although there are more funds to disburse later."
Cable also raised concerns about policy fragmentation, and about the composition of the housing being funded. "The one off announcements we have heard over the summer do not result in a fully joined up policy. And already the money announced today has been watered down so it will not all go to 'council' housing. There will be a mixture of social and affordable housing."
His conclusion was measured: "Overall this is one cheer territory," Cable said. "A start but a long, long way to go."
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