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UK's homeless are victims of our 'distorted and under-regulated' housing market

3 min read

Writing exclusively for PoliticsHome, Lord Beecham argues that major changes are needed in all aspect of housing policy to address the current homelessness and rough sleeping crisis.


Ken Loach’s acclaimed film, I, Daniel Blake – the moving story of a man’s battle with a dysfunctional and cruel ‘welfare’ system – is set in Newcastle. 50 years ago, Loach’s television play Cathy Come Home had a similarly powerful impact for its expose of the horrors of homelessness. It was broadcast in November 1966, the month I was selected as Labour candidate for the Newcastle council ward that I have represented since the following May.

It’s both sobering and shameful that half a century on we face another crisis of homelessness and rough sleeping. The two terms describe different conditions. Rough sleepers are the unfortunate people who sleep on the streets, in doorways, alleys, bus shelters and the passage that leads from Westminster tube station to the Houses of Parliament. The latter, a daily reminder to MPs and Peers of the existence of a problem which has doubled in terms of numbers since 2010, and now stands at more than 4000.

The homeless are those without their own place. Often sharing accommodation, perhaps  temporarily housed by councils or voluntary organisations in far from satisfactory conditions, pending possible rehousing often far away from the home they used to occupy.

Many of these people, and their children, are the victims of our distorted and under-regulated housing market. The problem is the sheer shortage of genuinely affordable housing to rent, and the lack of security of tenure, in a world increasingly dominated by buy to let investors who have bought up 35% (and rising) of former council houses. It’s not just a question of people being illegally evicted but the increased difficulty in our low wage economy to pay what landlords demand.

As a consequence, and with a shortage of social housing, we have seen an increase of 40% in the number of people having to be found places in temporary accommodation. All at a time when council budgets are under unprecedented pressure, the likes of which I’ve never seen in all of my near half-century as a councillor.

The government is supporting a private member’s measure, the Homelessness Reduction Bill. But even though it has pledged £48m over three years, the Conservative-led Local Government Association estimates this will still leave a £92m gap by 2020. The overall size of local council cuts will in the meantime, reach £5.8bn. And homelessness of course, also brings with it extra pressures on people and their families, leading to greater demands on the health, social care and education services – all of which are themselves under huge strain.

We need major changes in policy on housing, including local authority and housing association building for rent, as well as much stronger regulation of the private rented sector in terms of rent levels and security of tenure. Time as well, to review and improve aspects of current welfare policy. Changes to universal credit, for example where direct payments to landlords are now excluded and involving unrealistic assessments of rent levels, should be reversed.

I await with huge interest the government’s promised Housing White Paper, but I’m not holding my breath in expectation of the radical changes needed to transform the lives of so many of our most vulnerable fellow-citizens. What a contrast between the treatment of the heirs of owners of family homes valued at £650,000 and those for whom the prospect of a secure, affordable rented home – let alone owning one – is utterly remote.

Lord Beecham is a Labour Peer and is a Newcastle City councillor

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