When the Tory-led government announced that social rents should rise to market levels, there was anger but nothing happened. That anger wasn’t channelled; forged into a weapon to attack the government and the local authorities and greedy Housing Associations. Instead, people just rolled over and took it.
When the same thing was proposed by Wilson’s Labour government (a LABOUR GOVERNMENT) in 1968, there was righteous indignation. But instead of sitting and fuming, people actually did something about it. They organized rent strikes. So far, few people have advocated rent strikes and, as far as I know, I am one of those few.
In London, the Greater London Council (GLC), which was controlled by the Tories (hard to believe but the Tories only liked the GLC when it was run by their fellow travellers), was particularly zealous in implementing the rent increases. I found this article by Ian Macdonald on marxists.org in which he says:
The Greater London Council is Britain’s biggest landlord. There are about 242,000 tenants involved. On 7 December last year, the chairman of the GLC Housing Committee announced the Tories’ new rent scheme. Under the scheme, GLC tenants can expect their rents to increase by 5s in the £ in October 1968, a further 5s in the £ in October 1969, and an extra 4s in 1970. A tenant now paying £4 per week, will be paying £6 16s in 1970, and tenants in some of the newer flats will be paying as much as £10 per week. In addition, lodger charges are to rise, and central heating and car parking will be more expensive.
That is not all. In future, less money is to be spent on repairs, and tenants will have to do their own interior decorating. In this way, the Council hopes to save £850,000 on repairs, and £500,000 on decorating. It also means the sack for some of the Council’s 6,000 electricians, plumbers, carpenters, and other maintenance men.
The GLC have made much of their intended rebate scheme. But the only way to get a rebate will be to go through a means test; no tenant, say the GLC, need disclose his income to the Council unless he is applying for a rebate. In fact, very few of the 240,000 GLC tenants will benefit. Here is an example of a family which will not benefit. The tenant earns £12 per week, and his wife £5. They have a child and a lodger, both over 21, and now pay a rent of £2 16s 8d per week. In 1970, they will pay £4 16s 4d and get no rebate.
You can see this happening right now. All Housing Associations have increased their rents above the rate of inflation and, furthermore, they have duly bowed to the government’s diktats and are letting out properties for market rents. Local authorities, too, have increased their rents. One of those councils is Hammersmith and Fulham – Cameron and Pickles’s favourite council – which has palmed off the management of its stock to Pinnacle and placed income restrictions on those people applying for or living in one of their properties.
Last year Hammersmith & Fulham announced:
Trailblazing Hammersmith & Fulham (H&F) Council is to be the first local authority in the country to simultaneously introduce fixed term social housing tenancies and a maximum income cap for people wishing to access the housing register.
The flagship council will be ripping up the social housing rule book from April 2013 when it will introduce a number of radical policies which seek to increase low-cost homeownership, tackle the social and economic divide in the borough and give a far greater priority for council housing to people who are making a community contribution.
H&F, has the fourth highest property prices in the UK and one of the highest proportions of social housing in London as a proportion of total housing, with around 34 per cent social rented.
That compares to a London average of 25 per cent and a West London average of 21.5 per cent. Just over two per cent of the borough’s housing is intermediate.
H&F is also one of the first councils in the country to get back into building homes, after a 30 year absence. These properties are sold at a discounted market rate to those on low to middle incomes who live or work in the borough and might struggle otherwise to get onto the property ladder.
Notice how this article tells us that the council is “trailblazing”. As for its claim that it’s “building homes”, it is building homes but not for those on low incomes. Last year the council announced that it would be building 25 new (yes, 25) homes for those foolish enough to buy them. But there’s worse to come in this article:
Those households earning above £40,200 will generally not be eligible to access the housing register. Instead, they will be offered advice on other housing options including joining the Council’s HomeBuy Register.
This new way of working will replace an antiquated and inefficient system that created false hopes and expectations.
The council and the government’s solution to the housing crisis (and let’s face, it is a crisis) is to stimulate a potentially disastrous property bubble. The HomeBuy scheme aims to achieve this, in spite of the council’s denial. Ian Macdonald:
Instead of directly attacking this problem, the GLC and the Government talk rubbish about ‘well-off Council tenants’ being subsidised. In fact, every penny that is contributed to housing out of rates or from the Government goes straight into the pockets of the money lenders, landowners and builders. If this element were removed, Council rents would be cut to less than a quarter of their present levels without anything coming from the ratepayers or the Government.
Who says history doesn’t repeat itself? H&F Council wants to go further and bases its approach on the widely-discredited and evidence free report produced by its former leader, Stephen Greenhalgh and his partner John Moss:
Currently most social housing tenants have the right to stay for life unless the tenancy is brought to an end because of a breach. Once the tenant passes away, the right of succession passes onto a family member even if the housing need of the individual is less than other potential applicants.
The council believes that this does not promote personal aspiration or provide tenants with any incentive to try to move into home-ownership and fails to take into account the fact that a household’s need for social housing may be temporary.
From next year, the council will issue fixed-term tenancies of five years for new social housing lettings. This would be reduced to two years in certain cases.
Existing tenants will be unaffected by the new proposals. New tenancies in sheltered accommodation and for those with special housing or health needs will still be on a secure basis.
Two year tenancies will be issued for those with a history of antisocial behaviour and for those between the ages of 18 to 25.
So what Wilson’s Labour government failed to achieve in 1968 has now been enthusiastically adopted by the Tories. The only real difference between then and now is that the classism is turbo-charged and more blatant than ever.
As for those who doubt the effectiveness of rent strikes, Macdonald writes:
It is true that badly organised or isolated rent strikes are usually defeated. But where the tenants are properly organised and show determination, they have in the past succeeded. In Glasgow in 1915, the strike was completely successful. In 1938-9, there were over 30 strikes in the East End of London demanding cuts in rents. All were successful. In 1939, 50,000 Birmingham municipal tenants defeated a differential rent scheme similar to the present GLC scheme after a 10-week strike. In the 1950s, Luton tenants managed to defeat a similar scheme. The GLC tenants can do the same, but there is no doubt that the battle will be tougher than anything in the past, since the Government’s whole prices and incomes policy is at stake.
The key, as always, is organization. These days, organizing rent strikes may be harder because of Housing Benefit. Yet, these payments have been replaced by something called the ‘Local Housing Allowance’. The Tories also want people on low incomes to pay Council Tax. This is nothing less than a form of economic feudalism, in which the poor, the vulnerable and those earning less than £40,000 are forced into a 21st century version of serfdom.
John Grayson, writing for Inside Housing says:
The campaigning of tenants between 1968 and 1973 had an effect. Many councils began negotiating with tenants’ organisations for the first time. The Association of London Housing Estates drafted the first tenants’ charter in 1970. Three years later Dick Leonard, a Labour MP, introduced (unsuccessfully) the Council Housing (Tenants’ Representation) Bill.
Unfortunately the proto-neoliberal Labour government of Wilson and Callaghan decided to have another stab at crushing council tenants:
Between 1974 and 1979 the Labour government continued a policy of cuts in housing. There were often confrontations with councils and the National Co-ordinating Committee Against Housing Cuts organised a national campaign in 1975. In Liverpool the Tenants’ Co-ordinating Committee emerged as a federation for tenants and rent strikes were organised in protest at the council’s policies. The tenants were excluded from all council meetings.
Rents are increased, people are threatened with having their children taken from them and there’s the Bedroom Tax, another half-baked government idea to ‘solve’ the housing crisis. Yet there is no evidence to suggest that such a draconian measure will do anything other than hammer those who are already being squeezed by a high cost of living and stagnating incomes.
We want homes, not property ladders.