Author: Isaac Rose

Grenfell, Three Years On: a Preventable Disaster that Could Still Happen Again

By Stuart Hodkinson (@stuhodkinson) and Phil Murphy (@MancCommunities)

 

Three years ago, at around 12.50am on 14 June 2017, a small kitchen fire started in a flat on the fourth floor of Grenfell Tower, a 24-storey public housing block of flats on the Lancaster West estate in North Kensington, London. The fire began from an electrical fault in a Whirlpool fridge freezer (a corporate manslaughter tale for another day). It should have posed no problem to the first firefighters on the scene. Grenfell, like most post-war high-rises, was made of reinforced concrete and had been designed to temporarily contain fires within separate flats, known as ‘compartmentalisation’. But this fire did not behave as expected, quickly breaking out of the kitchen window and rapidly climbing up the Tower’s east face until the entire building became a towering inferno. 

 

Grenfell was the deadliest peacetime residential fire for over 800 years, killing 72 people, rendering 201 households homeless, and devastating an entire community. As the #BlackLivesMatter movement resurges worldwide, it is also important to remember that the vast majority of those who died were from Black, Asian and Minority Ethnic backgrounds. Survivors believe structural racism played a major role in producing their dangerous housing conditions and in the callous post-disaster response by the state that failed to adequately rehouse people. Seven families made homeless that night are still living in temporary accommodation. And yet, three years after this heinous crime was committed, no prosecutions have been brought against any public officials or the companies that profited from the tower’s deadly refurbishment — Rydon, Arconic, Celotex, Artelia, Harley Facades, Studio E, Exova Warringtonfire, Max Fordham, JS Wright & Co, CEP Architectural Facades Ltd, and Kingspan. 

 

As we remember why Grenfell happened and why so many people died, the need to keep fighting for the living and future generations is more urgent than ever because large parts of the broken regulatory system that produced Grenfell remain in place. In this article, we pay particular attention to the ‘stay put’ policy that played such a decisive role in the high death toll at Grenfell and remains the default instruction to residents living in high-rise blocks in the event of a fire. We conclude that the post-disaster actions of government and industry so far come nowhere close to preventing the next Grenfell from happening.

 

The public inquiry so far: understanding why so many people died at Grenfell

 

Prior to Grenfell, the highest recorded death toll from a major tower block fire in the UK was six — at Lakanal House, Southwark, in 2009. So why did so many people die at Grenfell? Despite its many documented shortcomings, the Phase 1 Report of the ongoing public inquiry into the Grenfell fire, led by the retired judge, Sir Martin Moore-Bick, has provided two important answers: the first relates to catastrophic failures in the building’s ability to resist the spread of fire and toxic smoke following its £9 million refurbishment between 2014 and 2016 by Rydon Maintenance Ltd; and the second lies in institutional failings by the local authority building owner, the Royal Borough of Kensington and Chelsea, its tenant management body, KCTMO, and the London Fire Brigade (LFB) — not the individual firefighters, who were exonerated — which prevented many residents from evacuating to safety. While the LFB should be held accountable for its role, we suggest responsibility for the failure to evacuate residents lies elsewhere. 

 

With great technical detail, the inquiry could not be clearer in its initial findings that “the design of the refurbishment, the choice of materials and the manner of construction allowed an ordinary kitchen fire to escape into the cladding with disastrous consequences”. Of critical significance was the presence of Aluminium Composite Material (ACM) rainscreen cladding panels with highly combustible polyethylene cores, and polyisocyanurate (PIR) and phenolic foam insulation boards behind the ACM panels. Experts found that the cladding and insulation provided a fuel load equivalent of 32,000 litres of petrol and the fire’s spread was facilitated by window and air vent assemblies that provided the fuel and the route for fire to travel rapidly from an internal room to the insulation and cladding, where it found cavities which acted like chimneys. The insulation boards used on Grenfell Tower — and probably present in millions of homes across the UK — released large quantities of carbon monoxide and cyanide gases as they burned. Detailed evidence presented to the inquiry by Professor David Purser, inhalation toxicologist and fire scientist, suggests that the majority of the 72 deaths were caused by the “inhalation of asphyxiant gases”. 

 

Let us now remember that in order to save £300,000, a less flammable zinc-based cladding product originally chosen for Grenfell was replaced at the behest of RBKC in favour of this cheaper and far more incendiary substitute. Retrospective testing found the ACM cladding failed to meet the governments ‘A’ rating safety standards and by the time it had been installed as a cassette system, some of the materials were as low as ‘E’ classification. As an industry source told a BBC investigation, “you wouldn’t put E on a dog kennel”. 

 

Alongside the cladding, the public inquiry found that poor quality design, specification, workmanship and materials across the refurbishment project fatally compromised the building’s ability to resist the spread of fire and smoke travel — a critical layer of fire protection inherent to the original structure. While the intensity of the heat — which reached temperatures of 2000℃ — inevitably caused window glass to break, fire and smoke spread was helped by the use of uPVC window frames and extractor fans that melted at low temperatures, surrounded by flammable spray foam and a thin flammable membrane but without cavity barriers to prevent fire spread. This provided the means for the fire to spread outward from the kitchen in the originating flat. Tests conducted on front doors that were fitted to many of the flats in 2011 and survived the fire intact found that they resisted fire for just 15 of the legal 30 minute minimum, allowing smoke and fire to spread inside the building. On the night of the fire, evacuation efforts of residents and the LFB were hampered by other failures to the smoke ventilation system, the emergency lighting in the stairwell and the lift — all as a result of the 2014-16 refurbishment.

 

But the high death toll was not simply down to the botched refurbishment. Much — in our view, too much — of the Phase 1 report is focused on criticising the LFB’s senior leadership for failures in planning and preparation for fires in high-rise buildings following the lessons of Lakanal House in 2009, and in how it managed the incident on the ground and in the control room. The Inquiry found that the incident commanders and fire fighters present that night had received no specific training in the particular dangers associated with combustible cladding or how to organise an evacuation; there was no contingency plan for the evacuation of Grenfell Tower; and the LFB’s operational risk database contained almost no information of any use about Grenfell to an incident commander called to a fire. This was compounded by the failings of RBKC and KCTMO who, despite repeated requests by the LFB on the night for a list of residents — including details of vulnerable residents that couldn’t self evacuate — and plans of the building, failed to provide this information until 8am. It was subsequently found to be “15 years out of date. These factors contributed to the LFB’s decision not to attempt to evacuate the building until 2.47am, nearly an hour and a half after the compartmentation was breached. Many of the 227 people who survived did so by ignoring the LFB’s instruction to ‘stay put’ and self-evacuating instead. 

 

The failure to evacuate the building so long after stay put became unviable undoubtedly cost lives. Yet the inquiry is wrong to place all the blame on the fire brigade for this — its role was and remains to rescue people from fires, not to plan an evacuation strategy for every building it could possibly be called out to. What is missing from the public inquiry to date is an historical understanding of the role of building owners and landlords in making ‘stay put’ such an article of faith in discharging their legal duties towards the safety of residents living in their homes and why alternative strategies, that protect escape routes, as used in some brigades, were not national policy at the time of the Grenfell fire.

 

Before Grenfell: systemic failures and institutional indifference

 

What happened at Grenfell Tower is undoubtedly complex, perhaps explaining why the public inquiry has so far focused on establishing the ‘facts’ of what happened on the night of 14 June 2017.  Although the government has declared the Grenfell cladding to be unlawful, the public inquiry chair, Sir Martin Moore-Bick, has so far only concluded that the refurbishment works to the external walls of the building were unlawful by leaving them unable to adequately resist the spread of fire. Phase 2 of the Inquiry — currently paused due to the Coronavirus pandemic but restarting in July — will seek to understand how this happened over the next couple of years although it is likely to remain focused on non-compliance with the law, rather than exploring the culpability of previous governments and their policies. 

 

Nevertheless, there is already plenty of evidence pointing to the root causes of the disaster: namely the systemic policy and regulatory failures of central and local government, and the institutional indifference to the safety of residents exhibited by the housing construction and landlord sectors. This can be encapsulated in two unbelievable yet true facts about Grenfell: first, that despite the presence of so many design and construction failures, the deadly refurbishment passed all 16 known building control inspections by the local authority between 2014 and 2016; and second, residents repeatedly raised concerns about fire safety and the standards of works dating back to 2011 to RBKC, KCTMO, Rydon and other bodies that were routinely ignored and even aggressively shut down with threats of legal action. This prompted the chilling prediction in November 2016 by residents who were members of the Grenfell Action Group:

 

It is a truly terrifying thought, but the Grenfell Action Group firmly believe that only a catastrophic event will expose the ineptitude and incompetence of our landlord, the KCTMO, and bring an end to the dangerous living conditions and neglect of health and safety legislation that they inflict upon their tenants and leaseholders…. It is our conviction that a serious fire … is the most likely reason that those who wield power at the KCTMO will be found out and brought to justice! 

 

Yet the Grenfell disaster was not simply foretold by its own occupants. A series of deadly cladding fires dating back to the mid-1970s generated the same demand by campaigners for much stronger building regulations. While devolved governments in Scotland and Wales took some steps prior to Grenfell to improve building safety, the UK government in England consistently refused to listen and act. Why? Because since the neoliberal victory of Margaret Thatcher in 1979, successive governments of all political persuasions (Conservative, Labour and Coalition) have been ideologically committed to rolling back state provision and social protections to boost capitalist profitability through privatisation, outsourcing, deregulation, self-regulation and more recently, austerity. These policies fundamentally weakened both the safety standards governing construction and building occupation, and their enforcement at the time of the Grenfell fire.

 

This neoliberal-corporate complex explains why, in addition to Grenfell Tower, an estimated 2000 high-rise buildings (18 metres or taller) housing at least half a million people are at serious risk from different types of combustible cladding; and once buildings under 18 metres are included, the real figure could be anywhere between 11,000 and 100,000. Research by Inside Housing traces this particular story back to the 1997 privatisation of the Building Research Establishment (BRE) that turned a public safety body testing, certifying and approving building products and systems into a highly commercialised actor embedded in the private building and materials industry that derived a significant amount of its annual income from testing and certifying products of the insulation and cladding industry

 

In 2006, the privatised BRE ran a closed-door industry consultation on proposed new energy efficiency regulations designed to fulfil the UK’s promise to reduce carbon dioxide emissions under the 1997 Kyoto Agreement. With government, developers and landlords all baulking at the enormous cost of insulating millions of existing homes, this corporate lobbying saw the building regulations subtly changed. A previous outright ban on combustible cladding and insulation in buildings over 18 metres high was watered down and an alternative legal route created through which combinations of cheaper combustible materials previously outlawed could be used. In 2014, the Building Control Alliance (BCA), which represents building control officials, agreed to formalise the approval of this cladding without it even being fire-tested as a system, through the use of ‘desktop study reports’ based on existing test data supplied by government-approved testing bodies, including BRE. It is worth noting that in April 2016, a BRE report into high-rise cladding fires recommended no changes to the existing building regulations

 

Putting profit before safety also explains why Grenfell Tower and the vast majority of these high-rise buildings encased in flammable cladding do not have sprinkler systems fitted. Sprinklers have almost eliminated fire deaths where fitted and reduced damage to health and property. Yet in England, sprinklers have only been required in buildings taller than 30m and constructed since 2007 with no requirement for retroactive installation unless a fundamental change is made to the structure or use of the building. This is despite the All-Party Parliamentary Fire Safety and Rescue Group of MPs warning four consecutive government ministers about the need for urgent action following the deadly 2009 Lakanal House fire in Southwark. The Coalition Government’s response in 2014, was that it was “the responsibility of the fire industry, rather than the Government, to market fire sprinkler systems effectively and to encourage their wider installation”. The UK is also one of a very small number of countries worldwide that has built residential high-rise blocks with only a single means of escape stairs and thus residents live with the ever present prospect of being trapped by fire or smoke with no alternative means  of escape.

 

The clear failures in how KCTMO managed fire safety at Grenfell Tower before, during and after the refurbishment are themselves a product of flawed changes to regulations governing the management of common parts of rented housing introduced under the 2005 Regulatory Reform (Fire Safety) Order (RRFSO). The RRFSO brought in a self-regulated system in which building owners, landlords or managing agents were made legally responsible for assessing and mitigating fire risks to people in the building — including the possible need for evacuation strategies — whilst at the same time placed under no specific obligation to conduct fire risk assessments in a given time period and free to employ their own unregulated fire risk assessors. The Fire Protection Association reported in 2018 that nearly two-thirds — 500 — of the 800 fire risk assessors operating in the UK were not registered with accredited bodies

 

Fire safety failings have been exacerbated by austerity with huge cuts to stand-alone fire and rescue authorities: since 2010-11, over 9,000 fire and rescue service jobs in England have been lost — a 20 per cent cut. As a result, in the five years up to 2017, the number of fire safety inspections in tower blocks fell by 25 per cent. The impact closer to home is worrying: an FOI request to the fire and rescue service in 2018 revealed that of 489 Greater Manchester tower blocks “75% were deemed not to have met safety standards”. However, fire service inspections are not normally very rigorous examinations of a building’s fire-resistant structure. We should therefore be terrified by the courageous public admission last year by Hyde Housing that all 86 of its tower blocks over 18 metres failed a Type 4 fire risk assessment — the most intrusive kind — with problems ranging from “serious and widespread compartmentation breaches”, “flammable and/or sub-standard cladding installations” and “missing or poorly installed fire stopping and fire breaks”.

 

Then there is the vexed issue of ‘stay put’ versus ‘evacuation’. The principle of stay put has been at the heart of England’s building regulations for purpose-built blocks of flats for decades. It originally rested on the simple idea that compartmentalisation will contain fire and smoke within the flat of origin adequately and for long enough to enable residents in other flats to safely evacuate. The building code guide that applied to high rise blocks built in the 1960s and 1970s was called CP3. Contrary to what many commentators are assuming, the strategy in those guides was to protect the stairs for use by evacuating residents at any time, including during a fire: “occupants of any dwelling may seek to leave the building therefore, provision should be made for them to do so, unaided, using adequately protected escape routes” [CP3 1971]. 

 

Yet stay put rested on critical assumptions about the integrity of fire resistance in post-war high-rise blocks made from reinforced concrete and local fire-fighting capacity. The most important of these are that the original compartmentalisation was sound and has not subsequently been breached by building works, and that there is only one fire in one compartment at any one time or fire-fighting becomes extremely difficult. In the years prior to Grenfell — particularly since the mid-2000s — many of the facts on the ground that once made those assumptions logical and reliable began to change in a deregulated environment. These include the industrial scale of combustible cladding and other highly toxic synthetic materials, shoddy design and construction work, poor maintenance management, and the sheer quantity of plastics being used inside both existing and new blocks. 

 

One significant outcome, as related in official fire incident data, is the frequency of fires in flats that affect multiple floors, a strong indicator of catastrophic compartmentation failure. Over the last 8 years this has happened on average every three weeks in blocks over four storeys. One of the most significant compartmentation failures took place at the 2009 Lakanal House fire in Southwark that killed six people. Just as at Grenfell, combustible cladding, dangerous refurbishment work, the absence of sprinklers, and poor fire risk management by the local authority landlord were all present. Crucially, so too was the advice of the LFB during the fire to stay put that contributed to the fatalities; those who survived did so by self-evacuating. Lakanal exposed the reality that building alterations and mis-management had rendered stay put ineffective and that there was no strategy in place by the local authority landlord to evacuate the building in the event of a compartmentation failure.

 

Remarkably, the response to Lakanal by local government, national fire chiefs, and the landlord sector — both social and private — was not to learn the (undoubtedly expensive) fire safety lessons from the disaster, but instead to find a way of pretending it never happened. The result was the 2011 Local Government Association’s (LGA) Guide to Fire Safety in Purpose Built Flats, written for the LGA by private fire safety consultants, C.S Todd and Associates Ltd, in consultation with the Chief Fire Officers Association and a range of mostly landlord representative bodies (including the National Federation of ALMOs, the National Housing Federation, the Chartered Institute of Housing, the (now dissolved) Tenants Services Authority, the National Landlords Association, and the Residential Landlords Association), many of whom purporting to represent residents’ views without consulting any living in high-rise buildings. The LGA guide’s purpose appears to have been to preempt any recommendations from the Lakanal coroner’s inquest and avoid the inconvenience of having to devise evacuation strategies for high-rise dwellers. It did this by downplaying the risks of fires and need for evacuations in high-rise buildings, dismissing the need for central fire alarms and sprinkler systems, and insisting that stay put was in fact “an evacuation strategy” that should always be the default approach with residents expected to remain in their homes unless directed to leave by the fire and rescue service. The ethos of this ‘fire safety’ guide can be summed in the following extract:

 

Some enforcing authorities and fire risk assessors have been adopting a precautionary approach whereby, unless it can be proven that the standard of construction is adequate for ‘stay put’, the assumption should be that it is not. As a consequence, simultaneous evacuation has sometimes been adopted, and fire alarm systems fitted retrospectively, in blocks of flats designed to support a ‘stay put’ strategy. 

 

This is considered unduly pessimistic... [and] is not justified by experience or statistical evidence from fires in blocks of flats... [or] the principles of fire risk assessment... Accordingly, proposals of fire risk assessors, and requirements of enforcing authorities, based on a precautionary approach (eg abandonment of a ‘stay put’ policy simply because of difficulties in verifying compartmentation), should be questioned (p.28).

 

The significance of the 2011 LGA guide cannot be understated. The 192 page document asserted itself as the high-rise fire safety bible for landlords, fire risk assessors, and enforcement officers in fire and rescue authorities — including the LFB — offering the definitive interpretation of best practice fire risk assessment and the legal requirements for ensuring fire safety on housing providers and enforcing authorities. The LGA guide contributed significantly toward the entrenchment of ‘stay put’ as the only evacuation strategy pursued by building owners, landlords, their fire risk assessors, and by the fire and rescue authorities who were instructed to follow its advice. It is the principal reason why, in 2017, Grenfell Tower, like virtually every high-rise building across the country, had a ‘stay put’ policy in the event of a fire. Yet, ‘stay put’ is not an evacuation strategy. We are in no doubt that if there had been a genuine and functional ‘evacuation strategy’ in place on the night of 14 June 2017 intended to get people safely outside of the building, every single person who died would have instead reached fresh air. Crucially, the failure to create an adequate evacuation strategy lies foremost with the landlord sector and the 2011 LGA guide, not with the LFB or any fire brigade. 

 

What has changed since Grenfell?

 

In the immediate aftermath of the Grenfell disaster, then Prime Minister Theresa May promised that her government would learn the lessons and take action. Some things have changed for the better. Building regulations were amended from 21 December 2018 to ban the use of “some” but not all combustible materials in the external walls of new residential buildings, hospitals, residential care premises, dormitories in boarding schools and student accommodation, as long as all of these are over 18 metres. The government in England has since announced proposals to go further by lowering the current 18 metre height threshold to 11 metres, extending the combustibles ban to hotels, hostels and boarding houses, and introducing a complete ban on unsafe ACM with an unmodified polyethylene core for use on any building. England will also finally follow Scotland and Wales in requiring sprinklers in new residential buildings over 11 metres high (instead of 30 metres). However, the current ban and plans do not apply to existing buildings and the government is acting slowly to address the issue of the toxicity of building materials. We need a total ban (with retrospective application) on combustible materials in the external walls of all multi-occupied buildings. There also remains no legal requirement for fire extinguishers, central alarms, and second means of escape as stay put remains the default policy.

 

Alongside the public inquiry, an Independent Review of Building Regulations and Fire Safety was launched in 2017 under Dame Judith Hackitt, the former Chair of the Health and Safety Executive. This has produced important changes for improving high-rise safety currently being taken forward into legislation. These include the creation of a new Building Safety Regulator to oversee and enforce a new safety regime with stronger civil and criminal enforcement powers over named dutyholders who will have clear legal responsibilities at each stage of the building’s life-cycle. New buildings will also need to have a building safety certificate before occupation can commence. High-rise residents will have a direct route to the Regulator to voice their safety concerns and a means for them to report serious safety issues is being progressed through a revamp of the CROSS system (Confidential Reporting On Structural Safety) administered by the Institutions of Structural and Civil Engineers, and the Health and Safety Executive. 

 

We have written elsewhere about some of the problems with the Hackitt-based regulatory system, but the most fundamental is that it will initially only include new-build high-rise residential blocks of 18 metres or higher. This makes no sense as made clear by the horrifying fires in 2019 to sub-18 metre buildings at Barking Riverside (timber cladding and balconies), the Cube in Bolton (part timber frame, flammable HPL cladding), Worcester Park (timber frame), Beechmere retirement complex in Crewe (timber frame) and a hotel at Cribbs Causeway in Bristol. These and thousands of other existing blocks of flats below 18 metres with potentially serious safety failings must be urgently placed in a more stringent regulatory system. The government has effectively conceded the point in its decision to ban combustibles and require sprinklers in new buildings above 11 metres.

 

Alongside changes to existing building regulations, the government also set up a Building Safety Programme in 2017 to take immediate safety measures — principally the testing and removal of combustible cladding on other tower blocks. As Pete Apps, the exemplary journalist at Inside Housing has shown in forensic detail, the entire process has been an unmitigated disaster from the start caused by government intransigence, incompetence and — once again — an ideological bias against government intervention in the market. The outcome is that three years on from Grenfell, 300 of the 455 high-rise residential buildings and publicly owned buildings found to have dangerous ACM cladding are still wrapped in it; and a further 1700 high-rise buildings are covered in other (non-ACM) forms of combustible cladding and fire safety defects, putting an estimated 53,000 households at daily risk of a catastrophic fire. 

 

One of the main reasons for the shocking scale of inaction is that while the government quickly made funding available for social landlords to replace ACM cladding, it initially refused to support the private owners (or freeholders) of high-rise buildings, telling them to ‘do the right thing’ and foot the bill. However, the vast majority of freeholders — which include many offshore ground rent speculators — have simply used their legal powers to recharge the costs of temporary fire safety measures (like waking watches) and any building works to their ‘leaseholders’ who bought flats and normally live in these developments. These residents have faced enormous bills running to six-figure sums, with their homes frequently valued as worth nothing [£0] on the housing market, leaving them unable to sell or remortgage to finance their exorbitant bills, and thus effectively trapped in unsafe buildings with appalling mental health effects

 

Nevertheless, the response by these residents to these injustices — with support from the Grenfell community — has been remarkable. Concerted political campaigning, spearheaded by the UK Cladding Action Group (UKCAG) and the Manchester Cladiators with support from the Leasehold Knowledge Partnership, forced the government in 2019 to make £200 million available to fund ACM removal works in private buildings, followed by a further £1 billion fund in March 2020 to support the costs of non-ACM cladding. However, a recent investigation by a committee of MPs found stringent rules on applying to the Fund “risks leaving many unable to access vital funding” and that a sum closer to £15 billion is required to to carry out remedial work on all buildings that currently have dangerous cladding and other fire safety issues, including inadequate fire doors or missing fire breaks.

 

Finally, we turn to the issue of evacuation from high-rise buildings. The Grenfell public inquiry has made two highly significant and welcome recommendations in this regard: first that the government should “develop national guidelines for carrying out partial or total evacuations of high-rise residential buildings” including procedures for evacuating disabled and older people; and second, that the owner and manager of every high-rise residential building should be “required by law to prepare personal emergency evacuation plans (PEEPs) for all residents whose ability to self-evacuate may be compromised”. These recommendations are no doubt contributing to the widespread changes being rolled out in firefighter high-rise incident training across the country with a focus on prioritising the protection of the stairs. Such an approach is not new as Kent Fire and Rescue Service have been using portable fans and smoke curtains to do it successfully for the past ten years. Residents across London will doubtless be asking why the LFB was not using this strategy in 2017 and what a profound difference it would have made if they had been. 

 

At the same time, just as with the Lakanal House disaster, there appears to be a major effort by the landlord lobby to resist the public inquiry’s recommendations on the need to develop evacuation strategies. A new Code of Practice (CoP) is currently being prepared at the behest of the housing sector through the British Standards Institute (BSI) by C.S. Todd and Associates Ltd — the authors of the 2011 LGA Guide — that will apply to all fire risk assessors and enforcing authorities like the fire and rescue service, every time they assess residential high-rise buildings. The new CoP is being put together by a small, shadowy group of landlords, fire engineers, and Chief Fire Officers without any accountability or scrutiny. Its contents suggest that the intention of the landlord sector is to cling on to stay put as the default evacuation strategy. Specifically, in response to the public inquiry’s positive recommendations, the draft COP states that it is not “normally practicable” for a building owner or landlord to make special arrangements for evacuation of disabled residents in the event of fire and that it is “wholly unrealistic” to expect the housing provider to prepare and update Personal Emergency Evacuation Plans for such residents in the event that the fire brigade deems their evacuation to be necessary. By  using the official stamp of approval from the British Standards Institute which acts as the main authority on regulatory good practice, this COP will enable building owners and landlords to completely circumnavigate the public inquiry’s recommendations, saving themselves a lot of money in the process.

There are of course many more aspects of the post-Grenfell response by government and industry that deserve attention. It is therefore vital that we all remain vigilant as opportunities to improve safety regulations governing the built environment do not come along very often. Over the coming months, as the public inquiry restarts, we will be doing whatever we can to shine a spotlight on those seeking to subvert the housing safety movement and support Grenfell United, UKCAG and other resident-led bodies in their quest for ‘truth, justice, and change’. 

 

 

Stuart Hodkinson is Associate Professor of Critical Urban Geography at the University of Leeds and the author of Safe as Houses: Private Greed, Political Negligence and Housing Policy after Grenfell (Manchester University Press, 2019). He can be contacted on s.n.hodkinson@leeds.ac.uk; for more information, see www.safe-as-houses.org  

 

Phil Murphy is a former Greater Manchester firefighter and Fire Prevention Officer (1997-2009) and now acts as an independent consultant advising landlords and responsible persons in relation to fire safety management of tall residential buildings. Having also been a resident in three separate high rise blocks of flats Phil Murphy has campaigned ceaselessly for improvements in fire safety and fire safety management of tower blocks. He can be contacted on phil@manchestersustainablecommunities.com  

 

Photo credit: Andy Mitchell, Flickr.

 

17 June 2020

Remembering Grenfell

By GMHA (@gmhousingaction)

 

Today marks the third anniversary of the Grenfell Tower fire in the London borough of Kensington and Chelsea, one of the deadliest peacetime fires in British history that killed 72 people and destroyed the lives of countless more. 

 

For those who were in or around Grenfell Tower on the night of 14 June 2017, who lost their loved ones, friends and homes, for the seven households who have still not been permanently rehoused, and for the estimated 500,000 residents living in homes at risk of catastrophic cladding fires across the country, the horror of Grenfell lives on. 

 

Yet, as we enter the 1096’th day since the fire, not one person has been charged or prosecuted for what happened at Grenfell; the major corporations involved in the tower’s deadly refurbishment - Rydon, Arconic, Celotex, and Artelia - are still trading; and the public inquiry is years away from making its findings. 

 

That’s why it is so important to not only remember what happened at Grenfell and the systemic failures that caused it, but to also scrutinise what has happened since in terms of government and industry (in)action. 

 

We stand in full solidarity with the bereaved, the survivors and the community; who continue to march, continue to commemorate and continue to call for justice. We are committed to play our part in this fight for justice — and to meet the Grenfell community’s call of ‘never forget’.

 

In Manchester you can get involved and support the campaign locally to remove flammable cladding, by getting in touch with the Manchester Cladiators. They tweet at @McrCladiators.

 

Today the Bolton Trades Council with the Bolton Socialist Club are holding a vigil of remembrance at 6.30pm, with speakers from the Grenfell Campaign and our friends at ACORN Manchester. To get on the call, email llanddl.labour@gmail.com.

 

This week, Greater Manchester Housing Action will host an article reflecting on these issues by Phil Murphy, a former Greater Manchester firefighter and housing safety campaigner, Stuart Hodkinson, a housing researcher and author of Safe as Houses.

 

Photo credit, Grenfell United.

 

14 June 2020

The ‘Good Landlord’ is a Myth

...or, Why Landlordism is Inherently Exploititative

 

By Tom Lavin (@tomlavin13)

 

Introduction: Good Landlord/Bad Landlord

 

Nominally ‘progressive’ housing charities, NGOs, politicians and newspapers are all quick to distinguish between ‘good’ and ‘bad’ landlords. 1 When they want to add a bit of drama, they enjoy describing the bad landlords as ‘rogue’.

Whilst it is necessary to identify subcategories within landlordism (clearly some landlords behave better relative to others) it is a mistake to describe the relatively better forms of landlordism as in any way ‘good’. To do so is to take renters for idiots.

An analogy: it is preferable to have £5 stolen from you than £50, but you would not describe the theft of £5 as being a ‘good theft’.

 

The Cotton Mills of Victorian Manchester

 

When Karl Marx and Fredrich Engels wrote about the exploitation of Mancunians working in Victorian cotton mills, they argued the relationship between mill owner and worker was inherently exploitative:

  1. When an employee worked in the mill, they produced something of economic value to the mill owner. This had to be the case, as a rule. If the worker did not do so, there would be no commercial sense in the owner employing them and paying their wages. To give a simplified example, a weaver in a mill might transform a bag of raw cotton worth £1 into cloth worth £3, creating £2 of economic value for their employer.
  2. For the employment of the worker to make commercial sense to the mill owner, the wages they paid the worker had to be less than the actual economic value of the employee’s work as a rule. Were this not the case, the owner would not make any money themselves as the economic value created by the worker (£2 in our simplified example above) would be immediately cancelled out by payment of £2 to the worker in wages!

Marx and Engels argued the fact there had to be a gap between the economic value of what the worker produced and the wages they received proved the workers were being exploited by the mill owners; their wages did not reflect the true value of their work.

Cotton Mill workers on strike in 1932, what advice would they give renters today?

 

The myth of the ‘good cotton mill owner’

 

Fast forward 150 years, and Mancunian children are taken on school-trips to a former cotton mill situated by Manchester Airport known as Quarry Bank Mill. The visits serve as a sort of civic rite of passage for young residents of a city once nicknamed ‘Cottonopolis’.

On guided-tours children are told, whilst there were many cruel cotton mill owners, the owners at Quarry Bank were some of the better employers of the era, providing half-decent workers’ cottages and an education for the child-labourers they employed (things their peers did not always do).

If we assume the tour guides’ claims are true and the owners were significantly better employers than their cotton mill owning peers, Marx and Engels would still maintain the arrangement the Quarry Bank owners had with their workers was inherently exploitative:

By paying wages that were less than the value of the labour being provided by the workers, they were ripping their workers off. To return to our theft analogy, they may have been stealing less than their fellow mill owners, but they were committing theft nonetheless.

 

The myth of the ‘good landlord’

 

Imagine the landlord equivalent of the romanticised Quarry Bank Mill owners, the idealised ‘good landlord’.

You are probably imagining a landlord who is prompt and attentive when there is disrepair in your home but at other times gives you ‘quiet enjoyment’ of the property. They do not charge a large sum for a deposit at the start of your tenancy and take a fair, common-sense view on the concept of ‘reasonable wear and tear’ at the end of it. Although they need to turn a profit for the arrangement to be commercially viable to them, they charge rent that is below the market rate for your area.

Even in this idealised, very rarely seen in the wild, scenario, the relationship between landlord and renter is still inherently exploitative if we apply reasoning similar to Marx and Engels:

If the landlord charged only what it cost them to supply the property to the renter, they would not make any money, making the arrangement a waste of time from their perspective. Therefore, for the arrangement to be commercially viable for the Landlord, they must as a rule charge the renter, a level of rent that is above the actual costs they incur in supplying the property. 2

 

Defences of entrepreneurialism

 

Marx and Engel’s views on mill owners have not gone unchallenged over the past 150 years.

Defenders of mill owners argue that, by being the people who had the initial idea to open a cotton mill, by taking a risk investing their money in machinery needed to weave cotton (when there was no guarantee doing so would be commercially successful) and by completing the administrative task of running the mill, they were justified in taking for themselves some of the economic value created by the employee’s hard work.

Each reader will have their own opinion on how much credence should be given to these arguments,3 if you are feeling unsympathetic towards mill owners, try instead to picture an entrepreneur you have some degree of admiration for.

It is perhaps hard not to respect the proprietors of the first curry houses on Rusholme’s Wilmslow Road, (setting up long before it was known as the ‘Curry Mile’).4

Immigrants, new to rainy 1950s Manchester, an unfamiliar and sadly frequently racist place, risked everything to open restaurants, gambling that their fellow Asians, newly employed in textile mills across Greater Manchester and beyond, would travel to visit for a taste of home, and that the existing local population would take a liking to food from the other side of the world.

When you think of the risk and stress endured and the skill involved in running such operations, combined with all the cumulative joy the restaurants brought to the city, few would seek to deny the restaurant owners some financial reward for their contribution to society.

But the things that make us respect these curry house pioneers cannot easily be applied to what landlords do. In fact, when we try to apply the defences of entrepreneurialism to landlordism, it is remarkable how comprehensively they fall flat.

Rice and three, an invention of Manchester’s curry houses that has gone on to become a much-loved part of the city’s culture

Applying the defences of entrepreneurialism to landlordism

 

No equivalent skill or ingenuity is required to buy housing, the only thing the prospective landlord needs is money or access to finance. To notice that there is a demand for shelter during a housing crisis requires about the same level of observation as noticing there is a demand amongst humans for drinking water.

A landlord might argue they possess a skill in predicting in advance when a residential area will ‘gentrify’ and that they use their skill to invest shrewdly in such areas to bring themselves greater profit margins. Such a ‘skill’ is of no benefit to society, so is unclear why it warrants financial reward.

Minimal bravery is required to invest in a buy to let property. In the unlikely event a landlord fails to find some desperate soul to rent their purchase to, they still have a capital asset that is likely to have appreciated in value.

The administrative burden of being a landlord is minimal when compared with running a cotton mill or a curry house. Arranging viewings, having to occasionally call a plumber, supplying annual gas safety certificates etc. are not arduous tasks. Despite this, many landlords either fail to fulfil their small role adequately5 or sub-contract to a letting agent (who is usually effectively paid for by the renter through further inflated rent).

The idea landlords might bring happiness or ‘spark joy’ for renters in the way restaurant proprietors might do for their patrons is of course risible, as every renter living in HMO Magnolia-land will be quick to attest.

 

Can an alternate ‘pragmatic’ defence of mill owners be applied to landlordism?

 

Mill owners might accept that the relationship they had with their workers was inherently exploitative, but argue any unfairness was ultimately justified by the productive nature of the arrangement and its results.

It is indisputable that mill owners’ employment of their workers saw raw cotton transformed into cloth on an industrial scale, that this was something society benefited from, and that the purchases of the cloth enabled the workers to receive a wage that was sufficient for (at least some of them) to survive. Without this arrangement, however unfair, how else would the workers have survived?

Whatever merits we believe this defence may or may not have in relation to cotton mills, it is difficult to see how it could be applied to the landlord and renter relationship. Landlordism is just not productive in the same way that a cotton mill is.

An indignant landlord might at this stage point to the millions of people in the UK living rented accommodation as proof of landlordism’s productive output, but to do so would be a sleight of hand.

By the time a landlord takes ownership of a home, the home already exists.6 The workers involved in the hard work of physical construction give society its housing stock and the renter their shelter, not the landlord.

 

Landlords are closer to Hand Sanitizer Hoarders than Curry House Pioneers

 

At the beginning of the COVID-19 crisis, opportunists bulk purchased hand sanitizer before re-selling it at extortionate prices. This led to widespread condemnation, even Boris Johnson denounced their ‘profiteering’.7

These profiteers did not manufacture their own hand sanitizer, no additional hand sanitizer was made available to society because of their actions, they just took ownership of a limited resource leaving desperate people at their mercy.

The parallels with landlordism should cause landlords moral discomfort.

In fact, in certain respects, the behaviour of landlords is worse. The hand sanitizer profiteer eventually transfers ownership of the commodity they have hoarded, the landlord withholds the right of ownership from the renter, preferring to profiteer month by month for as long as they please. There is also something particularly repugnant about profiteering from those who are almost certainly poorer than you are.

 

What is the actual cost to the landlord of supplying a property to a renter?

 

Given the traditional landlord battle-cry “I’ve got my own bills to pay too don’t you know!” readers may be surprised to learn nearly half (45%) of landlords own their renters’ homes outright i.e. without a mortgage.8

For these landlords, the ongoing cost of supplying a property to a renter is limited to the costs incurred keeping the property in a good state of repair and fit for human habitation.

In comparison to average rents these costs are negligible.

According to research by the insurer ‘More than’, the national average expenditure necessary on a three-bedroom home for repair work, maintenance and buildings insurance is only £73.17 per month.9

In comparison, the average rent on a three-bedroom home in Manchester in 2018 was £895.00 per month,10 more than 10 times the average ongoing cost to the mortgage-free landlord in supplying the property.

To put it another way, such a landlord’s yearly costs would be covered by payment of their first months’ rent (with change to spare), with every payment thereafter pure profit.

Traditional landlord battle-cry: "I’ve got my own bills to pay too don’t you know!"

But what about costs incurred by the landlord in acquiring the property?

 

In acquiring their asset, some landlords will have had the good fortune to have become owners of a property at no cost to themselves e.g. following an inheritance from a wealthy parent. Most, however, will have had to either invest savings or take out a mortgage to pay for their asset, or some combination of the two.

To the landlords who took out a mortgage and had renters living in the property for the lifetime of the mortgage, we can say with accuracy; the renters living in the property were the ones who paid off the mortgage, not you.11 It is therefore unjustifiable, once mortgage free, to use the original cost of purchasing the asset as grounds for charging rent above the ongoing cost of supplying the property. The original purchase price is a cost previous tenants have already borne. Despite this, readers will note landlords never issue their tenants with significant rent reductions once the mortgage is paid off!

But what of landlords who have used hard-won savings (we will be charitable and assume they have not just acquired wealth through inheritance!) in order to purchase their asset, or landlords who have an outstanding mortgage that they must make payments towards each month. Should the original cost of investing to purchase their asset and/or their outstanding mortgage payments be factors in a fair calculation when setting rent for their tenants?

 

“No taxation without representation!”

 

If landlords want someone else, i.e. renters, to cover the costs of acquiring ownership of their assets, it does not seem unreasonable to suggest, as a basic point of fairness, ownership of the assets are transferred to the ones doing the actual paying in exchange.

Under the current system landlords seek to have their cake and eat it at the renter’s expense.

When America was a colony of the UK, Americans fighting for independence highlighted a basic unfairness (that they were obliged to send taxes to the Crown but were not allowed to send representatives to Parliament to have a say how those taxes should be spent) with the rallying cry “No taxation without representation!”.

Renters could issue a similar, albeit less catchy, slogan; “No paying landlords’ costs of acquisition without transference of ownership!”

 

Landlordism should be actively discouraged

 

Under no duress,12 the landlord takes it upon themselves to behave like a hand sanitizer hoarder. They acquire ownership of a pre-existing home, simultaneously preventing anyone who might want to live in the property themselves from doing so, in the hope their ownership will enable them to make money out of those in need.

That they encumber themselves with mortgage debt or use up their savings to achieve this morally dubious aspiration, is their choice for which they need to take personal responsibility.

When landlords choose to behave in this way, society has no obligation to indulge or humour their behaviour. On the contrary, we have a moral obligation to deter such anti-social acts.

As Danny Dorling writes:

“If people hoarded food on the basis its value was sure to go up when others began to starve and would pay anything, we would stop their hoarding. But hoarding is now happening with shelter in the most unequal and affluent parts of the world”13

 

It is unlawful for landlords to profit from re-sale of water, why is re-sale of shelter any different?

 

Sometimes, because of the layout of the plumbing in certain properties, usually old houses that have been sub-divided into flats, it is impossible for water companies to provide individual water bills for each household.

When this is the case, the landlord of the building will receive one water bill for the entire property and then invoice each household for their portion of the bill based on a formula set out in law that forbids the landlord from making a profit.14

It is unlawful for landlords to make a profit from the re-sale of water as it is recognised it would be morally abhorrent to profiteer from something so necessary to human survival when the water company has already done so.

Given shelter’s own importance to human survival and given the builders and everyone else involved in construction have already been paid, there is no obvious reason why re-sale of shelter should be treated differently.

 

Our housing stock has already been paid for. That we continue to pay for it again and again in perpetuity is a form of collective madness

 

Consider the housing in your neighbourhood; the workers who dug the clay that made the bricks have been paid for their work, as have the builders who laid the bricks, as have the loggers who felled the trees and the carpenters who constructed the floors, as have the workers who quarried the slate and the roofers who laid the tiles. Everyone involved in the physical creation of the housing stock of the nation has been paid.15

Yet as renters we are, under threat of eviction and homelessness, forced to spend an unforgiveable amount of our limited time on earth working to earn wages to pay and repay for perpetuity for this housing stock that has already been paid for!16

Picture a renter who has lived in their home for 30 years. Over this time they will pay rent each month at a rate their landlord calculates is necessary to cover;

  • The Landlord’s mortgage payments, deposit, stamp duty etc.
  • The cost of keeping the property in a good state of repair and fit for human habitation.
  • The Landlord’s profit– i.e. the amount on top of the cost of supplying the property that makes the arrangement worthwhile to the landlord. 17

After 25 years, the renter has paid off their landlord’s mortgage (of course, their rent is not reduced to reflect this landmark!). Several years later, the landlord retires and decides to sell the property to a new landlord. The new landlord takes out a mortgage to purchase their asset, and it is now the role of the renter to toil away to pay this off for them.

On and on this merry go round will go until housing is taken out of the hands of commercial landlords.

 

Breaking away from landlordism and moving towards a ‘People’s rented sector’

 

If we broke away from landlordism, our housing costs would be limited to the cost of keeping our homes in a good state of repair and fit for human habitation, alongside a small contribution to the costs of continually replenishing the nation’s housing stock.18

For most renters this would represent a life changing reduction in housing costs.19 We would then all have the choice to either use the money saved on things that actually bring us happiness or cut our working hours giving us more leisure time to do the things that bring us happiness. And we would do so living without fear of homelessness. The overall benefit to society would be immense.

Landlords currently own our homes, but this can be changed. The renters’ rights movement ought to see transference from landlords to common ownership as our ultimate goal, what Joe Bilsborough terms a ‘People’s Rental Sector’.20

Under current laws, to bring our homes into common ownership landlords would need to be compensated but the cost would be nowhere near as daunting as you might first think.21

The alternative to taking ownership away from landlords is to keep renters chained to an exploitative relationship for perpetuity. If we believe landlordism should end at some point, why shouldn’t it be in our lifetimes?

When Nye Bevan founded the NHS in the aftermath of the second world war, he remarked he was only able to do so and placate his detractors by ‘stuffing their mouths with gold’.

The post- COVID-19 global recession will offer fertile ground for radical change similar to 1945. If we want to free people from housing costs the way Bevan freed people from healthcare costs, a similarly pragmatic attitude towards compensating profiteers in order to break free from their control may be required. Just like the NHS, doing so would be worth every penny.

 


 

Tom Lavin is a member of ACORN Liverpool’s organising committee and a Justice First Fellow working in housing law at Merseyside Law Centre. He previously worked for Shelter as a housing adviser.

Acknowledgements: Many thanks to Alex Hendrikson, Hamish Reid and Isaac Rose who took the time to read an early draft and all gave very helpful advice.

 

8 June 2020

 


 

[1] https://blog.shelter.org.uk/2014/06/good-landlords/ is a particularly craven example.

[2] https://anotherangryvoice.blogspot.com/2020/05/why-you-should-absolutely-detest.html?m=1 This argument is also well made here.

[3] As an aside I would suggest anyone sympathising with the mill owners investigates how it came to be that a few individuals at that time had the wealth available to become cotton mill owners whilst everyone else had nothing!

[4] http://www.bbc.co.uk/manchester/content/articles/2009/05/12/curry_mile_history_feature.shtml There is a nice write-up of the history here.

[5] https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/817630/EHS_2017-18_PRS_Report.pdf 14% of Privately rented homes have Category 1 HHSRS Hazards

[6] There are a small minority of occasions where this is not the case e.g. a landlord who purchases a property at auction that is unfit for human habitation and carries out work to make it habitable could arguably be said to have brought a home into existence. For such landlords, the subsequent section does not apply.

[7] https://www.ft.com/content/6af426bc-bfa3-4acb-86e0-c72eb0333e7e

[8] https://england.shelter.org.uk/__data/assets/pdf_file/0004/1236820/Landlord_survey_18_Feb_publish.pdf

[9] https://www.morethan.com/home-insurance/news/how-much-does-it-cost-run-home/ (£17.76 on buildings insurance and £55.41 on house maintenance).

[10] https://www.manchestereveningnews.co.uk/news/greater-manchester-news/how-much-average-rent-costs-15591274

[11] As outlined above, for an arrangement to be commercially viable for a landlord, they must as a rule charge the renter a level of rent that is above the actual cost they incur in supplying the property. The mortgage, deposit, stamp duty etc. are all costs incurred in supplying the property so are inputted into the rent.

[12] An argument could be made that there is a level of economic duress, that under the current system landlords are forced to make such investments and exploit renters to give themselves a pension. There may be a degree of truth to this (one way or another capitalism makes monsters of us all, how many readers can say with confidence the clothes they have on were not made in a sweatshop in conditions similar to a Victorian cotton mill?) but this is an argument to improve the state pension, not an argument for landlordism.

[13] Dorling D, All that is Solid: The Great Housing Disaster (Allen Lane 2014)

[14] https://www.ofwat.gov.uk/households/your-water-bill/waterresale/

[15] William Sorenson uses similar imagery in this excellent article: https://www.thesocialreview.co.uk/2019/01/23/abolish-landlords/

[16] https://www.theguardian.com/society/2017/sep/20/millennials-spend-three-times-more-of-income-on-housing-than-grandparents

[17] See 8

[18] This could either be done by a small surcharge applied to rent or, more equitably as part of a progressive taxation system.

[19] See 9

[20] http://www.gmhousingaction.com/resetting-the-balance/

[21] https://medium.com/@martin_farley/how-a-transition-from-private-to-public-rental-could-save-uk-renters-and-taxpayers-50bn-per-year-ece57b818c26

Manchester’s New Ruins, Ten Years On

By Owen Hatherley (@owenhatherley)

 

Over the weekend, a few items down on the headlines, below the pandemic and the protests and curfews in the US, was a story about a private Manchester high-rise called Skyline Central. This is one of dozens of speculative 'luxury flats' built in the centres of Manchester and Salford during the 2000s. Like so many towers of that era, Skyline Central is coated in flammable cladding that would be illegal in many countries; accordingly, it was assumed to be eligible for the special budget for cladding removal instituted in the aftermath of the Grenfell Tower disaster. But due to the complex nature of the way that budget is apportioned, Skyline Central won't get any of it, and the leaseholders of its flats will each have to individually fork out five-figure sums to ensure that the flat they live in is fit for human habitation. It is petty of me, but as soon as I saw the story, I thought 'oh my god, it's one of the 'New Ruins''.

 

Around ten years ago, I published my second book; it was one of two that were based on 'Urban Trawl', a regular feature for the architecture trade paper Building Design, which they'd offered me after reading a post on my blog about Southampton, my home town. 'Urban Trawl' ran from 2009 to 2012, and was discontinued when most of BD's staff were dismissed, as its owners, United Business Media, decided to run it as a forum for job advertisements, press releases and the promotion of their trade conference Ecobuild, with 'journalism' considered a superfluous luxury. The title of the first of the two books, which Rowan Wilson at Verso came up with after I'd failed to think of one, was A Guide to the New Ruins of Great Britain. It covered eleven towns and cities and one London borough, but the centrepiece, the places I'd become most obsessed with and returned to constantly, consisted of Sheffield – where the 'ruins' in question referred to its impressive legacy of post-war socialist planning, then being gutted by 'regeneration' – and Manchester, which I ended up seeing as a kind of New Labour flagship city, the place totally rebuilt to the point of unrecognisability in the image of Blairism by a strange 'post-rave urban growth coalition' of ex-modernists, ex-Situationists, ex-punks and ex-socialists. Here the 'new ruins' were the cheaply thrown-up 'stunning developments' of 'New Emerging Manchester', which it didn't take a genius to predict would soon end up looking pretty shabby.

 

After the 'Urban Trawl' of Manchester for BD and a follow-up piece on the post-punk legacy in the New Labour city for the short-lived music journal Loops, various people got in touch with me to add gossip and stories and further examples, far more than anywhere else I would ever write about. Some of this was printable, some of it, particularly on the pre-property development career of Urban Splash supremo Tom Bloxham, very much wasn't. A broadsheet architecture critic visited Bloxham in his 'bubble house' in the South of France as part of the annual MIPIM property fair, where he held court with then-head of the Homes and Communities Agency Sir Bob Kerslake; the critic emailed me the photographs suggesting that the local press in Manchester and Sheffield might be interested to know where the public money went. No papers in either city were interested in the pictures, which I eventually gave to the Salford Star.

 

The centres of Manchester and Salford had, it was clear, been completely reconceptualised as hubs for property development and consumption, with 'culture' a distant third – between the first and second draft of the book, Urbis went from being an ambitious if unsuccessful museum of urban history to being the new home of the National Football Museum, previously housed in Preston, then considered a depressed provincial town of little significance. There was shopping everywhere, of course, but mostly there were towers, towers, towers, all of them private, all of them within a square mile of Manchester Town Hall, but on both sides of the Irwell. The towers were an instantly recognisable typology.  Unlike in London, where the tallest buildings are offices and banks, these were all residential – curiously, the newly-built office buildings and banks of Manchester, at Spinningfields and Piccadilly Gardens, were low-rise.

 

Skyline Central is a classic example, with its wonky glass protrusion, its (now discoloured) bright cladding, and its goofy irregularity. Unlike post-war towers, the new ruins were dense, crammed into small sites; the flats inside were usually tiny, as in the Salford 'Dovecot Towers' that Penny Anderson lived in and wrote about brilliantly and scathingly in her blog Renter Girl; they were all private, obviously; and in architectural form, they were all distinctive, usually with swoopy rooftops that resembled a sort of architectural quiff. The Bradfordian photographer Joel Anderson, who came with me on the research trips for the articles and the book, called these 'Blair Hats'. Cladding seemed to be of overpowering importance in these towers. Everything was covered in it. Slatted wood, trespa, plastic, terracotta, and various kinds of ticky-tacky in irregular 'barcode facades', breaking with a modernist approach where you could see what a building was made of on its facade. These seemed in part a reaction to more stringent regulations on insulation, but as we now know the builders were radically unconcerned with the safety of residents, it can't have been just this. Mostly, the cladding and the hats had a role of signification – that is, of saying loudly to passers-by I AM NOT A COUNCIL TOWER BLOCK. The ultimate edifice was the Beetham Tower, the tallest building in the country outside London, one half hotel, one half luxury apartments; in a BBC video made at the time its architect, Ian Simpson, strutted around the olive grove he'd installed in his penthouse flat, intoning 'it is aspirational'.

 

Many people in Manchester – including many critics – had ambiguous views about this process. The basic plan had been to repopulate the city centre (not that this had ever really been a residential area), and that didn't involve dispossessing anyone as such, though obviously rents and house-prices rose in the immediate vicinity; there was a general agreement that this was necessary, although perhaps not in quite so brash and obnoxious a fashion. But it wasn't enough to just build inner-urban 'city living' for a middle class that previously lived in the suburbs, to construct a high-rise Cheshire for footballers and moguls in amongst (and often of course, in) the old warehouses and mills. The working class housing built by an earlier generation would soon prove to be fair game. Specialists in this were Urban Splash, a developer who, while by no means the largest in Manchester (at the time, this was probably the office developer Bruntwood's, whose logo features all over the city centre) were the most persistently newsworthy, due to the ambition and quirkiness of their projects. Urban Splash stylised themselves as the chic, post-punk property developer, the Bauhaus or Factory Records if they sold lofts. In retrospect, their redevelopment (they were given the estates gratis) of two council estates just beyond the inner ring road, the Cardroom Estate in Ancoats and the 'Three Towers' in Collyhurst, can be explained more by government largesse than by ethos. Urban Splash have been heavily reliant on government grants and deals with Housing Associations, without which they would almost undoubtedly have gone bust after the crash of 2008. Rebuilding council estates opened up access to a revenue stream for good deeds that otherwise they would never have received.

 

Unlike their later work on listed modernist buildings in Sheffield, Bristol, Morecambe and Plymouth, neither the Cardroom or the Towers were ever likely to win any awards for design. The Cardroom was a dour low-rise estate built after the crisis of confidence that hit modern architects in the 70s, while the Towers were three ordinary, standardised council blocks. Both had become fairly depopulated, and had long been hard to let. This fact meant that it was easy for Urban Splash to transform them into private enclaves – though a photogenic pair of streets in the Cardroom by the architects FAT was built as social housing for those tenants who wanted to stay in the area. The three towers became private luxury flats, covered in shiny cladding, which were renamed after the three Pankhurst sisters, Emmeline, Christabel and Sylvia, the latter of whom was of course a founder of the Communist Party of Great Britain – Urban Splash excelled at selling neoliberalism as radicalism. The Cardroom was intended to become a series of houses on canals designed by resident-investors, which was to be called 'Tutti Frutti'. This, despite several articles and programmes about it, never actually happened, but what did was a long block by the late Will Alsop, called 'Chips', because the plan was apparently inspired by 'chips on a plate'; this is the North, and people eat chips there. In 2018 it was featured in the local and national press as the most prominent of many private blocks to be covered in 'Grenfell-style cladding'.

 

As would have been easy to predict, one effect of the rising property prices and growing precarity in Manchester was that more people needed council housing; but rather than it being renovated and extended, it was being demolished or literally emptied out to be refilled by middle class homeowners. In 2010, around the time that Urban Splash received a government bailout, one of its bosses, Nick Johnson, was asked at a public panel discussion what he thought about a possible return of local authority-employed architects and council housing. 'I would no more trust a local authority architect to design me a house', he quipped, shaking his Oasis-style feather-cut as his company redeveloped Manchester's council estates, 'than I would trust a local authority hairdresser to cut my hair'.

 

This arrogance was all-pervasive, even when the shells of the buildings themselves were retained. In a breathtaking example of taking coals to Newcastle, Urban Splash took advantage of the New Labour government's Pathfinder scheme, where areas of 'low demand' were subjected to 'housing market renewal' through the demolition of large swathes of Victorian stock in order to make housing more scarce, and hence more expensive (you think I'm joking? Look it up) at an area of Salford they rebranded as 'Chimney Pot Park'. With the brick facades retained as a form of historic cladding and new steel-framed modernist pads inserted behind, now you too could own a two-up two-down in Salford! The MP for Salford, Hazel Blears, boasted of having enlisted Urban Splash to 'save' these streets, previously derelict and tinned-up as a result of the Pathfinder programme, by rebuilding them to become the open-plan homes of BBC workers. Elsewhere in Salford, I focused on the stark post-war urbanism of Pendleton, with its high, wide, repetitious blocks alongside a dual carriageway. Still inhabited and popular with students at the adjacent University of Salford, these blocks were not gutted and given to the 'aspirational', but were instead reclad in what proved, again, to be 'Grenfell-style' cladding. It is macabre to point it out, but it was incredibly lucky for the Labour Party that the first council tower wrapped in lethal materials to actually burn was in the Royal Borough of Kensington and Chelsea, one of the two or three Conservative-governed inner city areas in Britain. It could have been Salford.

 

 

Given that a lot of what I was writing drew on work that was already being done by the Manchester Mule and the Salford Star, I was surprised by the amount of attention it received – I ended up making a short film for the Guardian about Manchester, and was not long after invited to a specially planned panel about Manchester and 'regeneration' at MMU, alongside Ian Simpson and the long-established kingpin of Manchester City Council, Sir Richard Leese, then fresh from his night in the cells for beating up his stepdaughter, with Dave Haslam as the chair. It was an intimidating event, and I expected what I got. After my spiel, where I listed most of the things above, a bomber-jacketed Leese cried 'I've never heard such a load of old bollocks in my life', and compared me to those journalists from London who come up to Manchester and claim it's infested with knives and guns. What I didn't expect was for the first question from Haslam, the chair, to begin 'what I think you've got wrong, Owen, is...' Leese came up to me afterwards, cackled, and told me I was brave; in the pub after, an MMU lecturer told me the entire thing had been planned as a 'stitch-up' from the start to expose me to public ridicule.

 

This wasn't the only reason why I didn't go back there much after that; once a year or so I might come in to do an odd bit of teaching, to see an exhibition, or, for instance, to take part in the Spring conference in early 2016, but I would never linger in Manchester. I did notice that a block of privatised, socially cleansed council flats named after a founder of the CPGB had been joined by a Soviet statue of Engels on a privately-owned and patrolled public space in Manchester's pantheon of what I suppose we could call 'Leftwashing'. In A Guide to the New Ruins I had described New Labour Manchester as a 'finished project', one that had begun with the IRA bomb in the Arndale in 1996 and ended in 2008 with the financial crisis, and I assessed it on that basis. But a week-long visit in spring 2019 showed that I was very wrong about this. Like London, Manchester had not stopped. There were ten or so new towers, all again private, all again with small flats on tiny plots, this time designed in a more sober corporate modernist style, with less pink and lime green and without the 'Blair Hats' on top. Most of the cities (as opposed to London boroughs) I'd profiled in the two 'Urban Trawl' books have seen extremely little development since 2012 – mostly, as in Birmingham, what development there is consists of completing delayed projects of the 2000s, and dereliction dominates town centres across the country. There are two major exceptions – Preston, which was the focus of the follow up, A New Kind of Bleak, which transformed from a self-hating place bent on demolishing half of its centre to please developers (who proved not to be interested), into a showcase of 'community wealth building', a kind of craft beer social democracy; and Manchester, where neoliberalism never ended, and austerity's traces can only be found outside the ring-road.

 

The fact that Manchester now resembled London so much was not an accident but was a product of the way that the 'Northern Powerhouse' deal cooked up between George Osborne and Richard Leese treated Manchester a sort of miniaturised version of the capital. Leese and Osborne presumably looked at the way that Edinburgh and Cardiff had managed, even despite the crisis, to have their own successful economies based on Finance, Insurance and Real Estate – and Manchester would have the same role for a very partially devolved North. Just as in London, footloose international capital made jumpy by wars and global political lurches was encouraged to plough it into the safe haven of 30-storey safety deposit boxes. No new council housing was built, even though the need increased even more sharply. The Beetham Tower was now supplemented by several new, much duller towers by Ian Simpson, in a sort of austerity version of the boom's aspirational architecture.

 

In the Corbyn era, you might well have expected there to be a reckoning, given how much Manchester was a citadel of New Labour, given how much radicalisation had happened in the city during the austerity years, and given how much Manchester City Council cosied up to George Osborne as his policies decimated local government across Britain. Yet, again as in London, it never quite happened. Salford was a partial exception, as Hazel Blears' seat fell to Rebecca Long-Bailey and the council shifted to building council housing and replacing outsourcing with 'community wealth building'. But the same people who ran Manchester itself in the Blair era – who have run it since the 1980s, fundamentally – are all still there. Their legacy is the repopulation of the city centre, the enormous inflation of housing costs, the dearth of social housing, and an obsession with cost-cutting and 'the market knows best' that meant developers were left to wrap concrete frames in flammable plastics. I'm sure that retirement beckons, and they'll be quite sure to make sure to install a successor generation who believe in the same things. Financial crisis, mass socialist movement, Brexit, pandemic – none of it has been allowed to affect Manchester's growth coalition. They appear to think they are untouchable. I hope that they are proven wrong

 

Owen Hatherley is the author of several books on architecture and political aesthetics, and the culture editor of Tribune.

4 June 2020

Whose plans for whose lives? Will the Council listen to Mancunians when designing its Housing Development Company?

By GMHA (@gmhousingaction)

 

Tomorrow Manchester City Council’s 10 member Executive will meet online, (citizens can observe via the webcast here). Alongside discussions about the financial impact of COVID-19 and the need for a new Council budget, the Executive will also discuss a paper on the establishment of a Housing Development Company. The stated intention of the proposed vehicle would be to provide direct delivery options for a range of new affordable homes utilising City Council land assets.

 

Greater Manchester Housing Action has been campaigning for some years on the widespread lack of affordable housing in the city. It is evident to most in the city that there is deep public anger about this issue. We therefore welcome the Council’s intention to develop the vehicle, and consider it a step in the right direction. 

 

The proposal is a recognition that there is now a substantial problem in the city in delivering affordable housing. We note the commitment to zero carbon housing, which we welcome in an era of climate crisis - provided it is truly zero carbon, and not done through a clever accounting trick. And we read with interest the potential capacity to buy back housing stock. We believe this could be an effective tool to address local issues like the problems of Airbnb in Moss Side and other inner-urban neighbourhoods

 

However, there remain concerns that we would like to see addressed if this proposed vehicle is to meet its aims of providing affordable housing across the city. They are as follows:

 

First, the use of a public/private partnership model (which is one of two options) will mean the requirement for developer profit will have to be built in, and Freedom of Information requests may not be permitted. We strongly call for the vehicle to be fully owned and operated by the council with proper democratic scrutiny. This is a Labour council, ownership should be with the workers of the city and their elected representatives.

 

Second, the vehicle does little to challenge the model of financialisation in parts of the city that are leading to much of our housing being owned by institutional investors that care little for tenants or the wider city. This vehicle can experiment with diverse forms of ownership beyond the market but will be dwarfed by the actual reality in the city. 

 

Third, on its own the proposal is not significant enough to close the growing gap between those with secure housing and those living precarious housing lives. What other plans does the Council have to make a better housing future for the city? Now more than ever is the time to be radical and not timid. Indeed the 500 new units per year proposed would be delivered in a context in which once homes lost to right to buy are factored in (90,000 lost in Greater Manchester since the policy was implemented) there are likely to be only marginal gains in the overall affordable and social housing stock. 

 

Despite these issues we welcome the work by councillors and officers in putting together this proposal. Councils should be building homes for working class communities, and this municipalism in action has a long history in the city. However, the risk remains that this vehicle is not ambitious enough in addressing the growing crisis of affordable housing and gentrification in the city,

 

While it undoubtedly represents a step forward, we must be sure to push this to be as ambitious as it can be. GMHA will work with other groups and individuals to push for a more consultative and democratic process in the creation of the Housing Development Company. Groups already involved include Climate Emergency Manchester, Steady State Manchester, Rising Up Manchester Families. If your group, or you as an individual, want to be involved, please get in touch via gmhousingaction@gmail.com.

 

2 June 2020

John McDonnell disputes Thangam Debbonnaire’s account of Labour’s much-criticised ‘two year rent deferral’ position

By Isaac Rose (@_isaacrose)

 

Last night in a Zoom call with Labour activists, former Shadow Chancellor John McDonnell  stated that Labour’s position on renters’ rights during the COVID-19 crisis had been diluted under the new leadership. He rejected claims by current Shadow Housing Secretary Thangnam Debbonaire that the party’s current position was simply a continuation of previous policy (here, 24 mins in). Given Starmer was elected on the back of 10 pledges not to retreat from Corbyn’s policy agenda, McDonnell went on to register his ‘disappointment’ with the way policy had been moved.

 

At the weekend, Labour proposed that renters who fall into rent arrears as a result of loss of income during the crisis should be given two years to pay their landlord the money owed. We pointed out that this amounts to a situation where renters will face an effective rent-increase (ongoing rent plus payments towards arrears) for a two-year period. This would coincide with the worst recession in 300 years, pushing thousands in the private rented sector into a position where they would be unable to meet basic needs. 

 

Furthermore, the phrasing of the policy effectively foreclosed any discussion over whether landlords, mortgage lenders or the 1% should bear even a portion of the fall-out from the forthcoming arrears crisis. It individualises the problem and puts it onto the shoulders of tenants—all the while protecting the incomes of landlords.

 

McDonnell confirmed that the policy under the former leadership had been to suspend—i.e. cancel—rents, for those adversely affected by COVID-19, for the duration of the crisis period, referring viewers to the letter Corbyn wrote to Johnson on 18th March. This he pointed out was consistent with a broader policy platform by Labour to push for rent controls, which he noted had even been picked up and supported by Labour politicians outside of the left-wing of the party, including London Mayor Sadiq Khan.

 

McDonnell’s assertion that the previous leadership made a conscious decision to push for ‘suspension’ rather than ‘deferment’ (and that suspension was to be understood as a cancellation/ waiver rather than as a synonym for deferment) appears to be supported by tweets made by a member of LOTO at the time, Alex Nunns.

 

Before announcing the ‘two year deferral’ position, Debbonaire chose to meet with Ben Beadle, Chief Executive of the National Residential Landlords Association (NRLA) but not the organised renters movement. Following the backlash towards the position, Debbonaire met with ACORN on Tuesday and has promised ‘more announcements on rents’ in the coming weeks and a continued engagement with the organised renters movement.

 

Under Corbyn, renters came to rely upon Labour to be reflexively on their side and attuned to their needs. Under Starmer, the two year deferment position, announced on twitter with the phrase ‘Renters, Labour’s got your back!’, suggests at best ignorance towards the precarity with which renters live their lives. How many renters earning under the median wage were in the room when this policy was devised?

 

The landlord lobby—recently reconstituted under the banner of the NRLA—has sensed an opening, and is pushing their interests aggressively on the Labour leadership. Without countervailing pressure from the organised renters movement, Labour will continue to anger and alienate a significant part of their core vote.

 

Starmer must make amends. Renters and landlords have irreconcilable material interests. To stay neutral is to favour the powerful. If he wants renters votes at the next election he must make a concerted effort to show he is on our side—this could begin by ensuring the organised renters movement are consulted on policy before rather than after its announcement.

 

If Starmer fails to persuade renters he is on their side he should not be surprised when traditionally Labour voting renters following the same path as traditionally Labour voting Scots and traditionally Labour voting Brexit supporters.

 

Isaac Rose is a coordinator at GMHA.

 

14 May 2020

‘Renters, Labour has your back.’ Really?

By Isaac Rose (@_isaacrose)

 

Today Labour announced their demands of the government to tackle the looming crisis facing renters. Some are welcome. Scrapping section 21, extending the current evictions ban for the duration of the crisis, and giving residential tenants the same protections as commercial tenants — all of these are good policies that meet our demands.

Yet their proposal around rent arrears is woefully inadequate. It represents a cowardly capitulation to the landlord lobby by the Labour leadership. Far from ‘having the back’ of renters as their announcement on Twitter claims, they are selling them out.

Labour are asking ministers to grant renters at least two years to pay back any arrears accrued during this period. So, imagine a renter who, because of lost income during the crisis, has missed two months rent. Taking the average UK rent, that would mean they had accrued a debt of £1,772. Paid off over a period of two years, this would mean an increase of £74 on the monthly rental bill—an increase of 8%. If they miss three months, that increase in payments rises £110 per month, or an increase of 12.5%.

Many renters can only just afford to make ends meet, and adding these rent-repayments would make their situation impossible. What’s more, given the prevalence of short-term lets, this will in many cases lead to a situation where renters are paying off debt to a landlord whose property they no longer live in.

All this, to protect the pocket of the most unproductive class in Britain today. Landlords contribute nothing to society, solely extracting wealth via the owning of an asset — wealth that’s generated through the work of their tenants. They don’t even provide people with a decent place to live, with properties frequently run down, mouldy and cold. Yet, unlike other sectors of society such as workers and small businesses, landlords are expecting to come out of this crisis with their wealth not only intact, but increased. Currently, landlords are receiving a double subsidy — with a freeze on mortgage repayments protecting their outgoings, and mandatory rent repayment protecting their income.

There is another way. The government should pass legislation to cancel the rent in the private rented sector, for the duration of the crisis. For the duration that landlords could access a mortgage freeze, renters would be under no obligation to pay rent, and would not be evicted for missing rent payments. Any debt accrued would be wiped off. Landlords would shoulder the burden, and take a hit like the rest of us. For the cases where landlords relied on their rental income to survive, we would propose a means testing system. Those landlords would be eligible for government support; while others who just own property to increase their bottom line, would not.

Labour should be full throated in its demand to cancel the rent. Renters are going through a time of great difficulty, with many experiencing loss of income. The looming cliff edge when Section 21 is unsuspended will unleash a tsunami of evictions, and many are scared. They’re looking for a voice to advance their interests — in a country where the entire political system is captured by the landlord lobby, and where almost 1 in 5 MPs in Parliament are landlords themselves.

Under Corbyn, Labour was this voice. Yet under the new leadership, the party has backpedalled. It’s time they found some courage, faced down the landlord lobby and stood up for their voters.

 

Isaac Rose is a coordinator at GMHA.

 

9 May 2020

All in this together? How a decade of austerity cleared the way for Covid-19 in deprived urban areas

By Tom Gillespie (@t_a_gillespie) and Kate Hardy (@katerhardy)

 

Addressing world leaders on Monday, UK Prime Minister Boris Johnson claimed that ‘it is humanity against the virus – we are in this together’. Sound familiar? ‘All in this together’ was the oft-repeated mantra used to justify cuts to public spending and welfare services during the Cameron-Osborne austerity years.

Yet, much like austerity, we are clearly not all in this pandemic together. In England and Wales, people are dying from Covid-19 at twice the rate in deprived areas than in affluent areas. The UK government’s strategy during the critical period of early March was to allow coronavirus to spread through the population with a view to achieving ‘herd immunity’, an approach described by Johnson as taking the virus ‘on the chin’. Clearly, some people in some places have had to ‘take it on the chin’ a lot harder than others.

But why are Covid-19’s effects so geographically uneven? It’s austerity, stupid. Cuts since 2010 have had a disproportionately large impact on deprived urban areas. Quite simply, the areas with the highest death rate are also those that have been ravaged by a decade of austerity policies, creating poverty and vulnerability that is now combining with and amplifying the effects of the virus. As a result, having already borne the brunt of a decade of austerity, it is the poorest in society who are now disproportionately paying the price of the government’s disastrous Covid-19 strategy.

Take the London Borough of Newham: the worst affected by Covid-19 of all local authorities in England and Wales. Why might this be? To start with, Newham has experienced deeper than average cuts in funding from central government and has cut spending on public services by a third. In the area of housing, austerity has had particularly devastating consequences. Budget cuts combined with privatisation policies have led to a shrinking of the boroughs social housing stock and a growing number of people living in insecure, unregulated private rental housing (in 2016, the Conservative government voted against rules to ensure that rental accommodation is ‘fit for human habitation’, citing ‘unnecessary regulation and cost to landlords’).

This housing insecurity has combined with punitive policies such as the ‘bedroom tax’ and cuts to housing benefit to force low-income households into rent arrears, contributing to growing evictions and homelessness. In addition, Newham Council sought to capitalise on the 2012 Olympic games to gentrify the borough by redeveloping council estates, leading to the displacement of social housing tenants. As a result of this poisonous cocktail of local and national policies, Newham now has the highest rate of both evictions and households living in temporary accommodation in London.

Behind these depersonalised processes, first hand accounts of life in deprived areas can help us put the pieces together. Our research with people experiencing homelessness in Newham has shown that the living conditions in temporary accommodation, often in the private rented sector, exacerbates existing, and created new, health problems. Toni, a 22 year old, was living in temporary accommodation, sharing a single bedroom with her sister and 4 month-old baby. The poor quality accommodation was creating respiratory problems for her and her child: “The house [is] damp, I’m allergic to damp, it can affect my breathing, it’s not good for a newborn to be around damp”.

Rachel has been living in temporary accommodation for over two years with her young child, who had developed asthma during this time. She said, “I’ve got letters from doctors in Newham Hospital saying this house is not good for the family. We’ve both got bad asthma. It’s damp, the colour is changing – if you leave it for five days, it becomes green… Every winter my little one has to go to the hospital three or five times a month to stabilise her asthma’.

Angela, who had worked as a care worker for over 20 years had to stop work due to her health problem. Her asthma had developed into chronic obstructive pulmonary disease and the first stages of emphysema while she was living in temporary accommodation run by Newham Council: ‘when that mould came up, my breathing just went right down here. Then I put a complaint in about it and said I was going round the environmental health, next thing I know there’s someone up hoovering it all. And that’s what they’ve done ever since. Every day, someone comes up to hoover that. They’ve never treated it or nothing. And it’s black and white mould’.

It is clear from these accounts that living in poor quality temporary accommodation has a detrimental impact on the health of homeless people in Newham. The health problems described by Toni, Rachel and Angela constitute the frequently mentioned underlying conditions which make people more vulnerable to dying from Covid-19, such as asthma, emphysema and bronchitis. This reveals that austerity is at least in part responsible for creating the social conditions in which these health problems multiply. This illustrates how ‘underlying health conditions’ (often implicitly used to diminish the importance of coronavirus deaths) are actively produced by policies that offload the cost of public spending cuts onto specific bodies.

A slow response to the coronavirus pandemic is part of the explanation for why the UK has one of the highest death tolls from Covid-19 in the world. But 40 years of public housing privatisation, a decade of austerity, a culture of landlordism and a lack of protections for renters also have a lot to answer for. Just as overcrowding and a lack of access to sanitation and water in informal settlements are conditions that will enable Covid-19 to spread rapidly in the global South, housing poverty, exacerbated by 10 years of punitive austerity policies, is also shaping the uneven impacts of coronavirus in the UK.

Health funding should of course be diverted to deprived areas, but preventative social policy will also be necessary to address the underlying inequalities that make some people more vulnerable to dying of Covid-19 than others. Reversing austerity, investing in social housing and regulating the private rental sector will all be essential to avoid unnecessary deaths in the future. In the short-term, rents should be suspended to prevent a new wave of evictions and homelessness due to the economic crisis. In the longer term, a political movement that challenges the commodification of housing and prioritises public health over private property will be essential to stop the impacts of this -and future- pandemics falling most heavily on the shoulders of the most vulnerable.

 

Tom Gillespie, is Hallsworth Research Fellow at the Global Development Institute, Manchester and Kate Hardy is Associate Professor, University of LeedsThey were part of the group who initially set up GMHA in 2015.

This post originally appeared on the Global Development Institute blog.

 

8 May 2020

Resetting the balance – for a People’s Rented Sector

By Joe Bilsborough (@joebilsborough)

 

The lack of government action to materially protect tenants, particularly those in the private rented sector, is disappointing but unsurprising. Political contestation in the UK is increasingly stratified along lines of housing tenure and access to housing, and the coronavirus crisis, despite attempts to occlude this fact, is intensely political.

 

Government’s unwillingness to intervene is reflective of the wider political economic settlement underpinning contemporary British capitalism: what Brett Christophers has referred to as the rentierisation of the UK economy; what Will Davies has termed England’s new rentier alliance.

 

With this in mind, there is a need for housing campaigners to be doing serious thinking about demands that will reset this power imbalance running through the heart of contemporary British capitalism. This is particularly topical in light of the recent disappointing shift by the Labour Party, watering down its own policy on support for renters.

 

Whilst calls for rent suspension – i.e. cancellation – should be supported, it is important to recognise that this alone will not improve the dire conditions faced by many in the private rented sector (PRS), with absentee landlords unwilling to carry out repairs even in ‘normal’ times. Similarly, whilst calls for a Green New Deal public works programme including retrofitting should also be supported, such work under the existing ownership paradigm will only further inflate the value of landlords’ assets.

 

The challenge facing us is in combining the radical aspects of these demands whilst avoiding the pitfalls. Key to this will be formulating interventionist measures which capture the mood of the moment and transfer ownership of land and assets away from rentier forces and towards communities and democratically accountable authorities. We need, in other words, to be setting out the case for a People’s Rental Sector, buying-out, democratising, and refurbishing the regressive magic money tree that is the Private Rental Sector.

 

To do this, we need to be making the case clearly and loudly that the state needs to be directing capital to local authorities to allow them to purchase properties in the PRS, taking ownership over the sector. As we speak, the Bank of England is directly financing government spending – we are already through the looking glass of economic orthodoxy.

To do so would represent a paradigm shift, a way of utilising this crisis to simultaneously rebuild lost council housing stock, alleviate the pressures facing tenants, and end the grip of rentier interests over the United Kingdom’s addled economy.

 

Indeed, the nature of the UK’s housing crises and the divergent government treatment of different tenure types makes it crucial that this demand is made, both during coronavirus and as part of the recovery and rebuilding phase to follow. It is worth shortly recapping why this is the case.

 

First, tenants pay more to rent an asset than those with mortgages do to own one. Excluding housing benefit, tenants in the private rental sector spend twice the proportion of their income on housing than those buying with a mortgage do – 39% to 18%. Whilst those with mortgages have received a payment holiday, there is no such luck for tenants.

 

Second, and relatedly, renters are the least affluent group in society on the basis of housing tenure. Half of working renters are one pay check away from losing their home; 35% of private renters are living in poverty; over two thirds of renters have no savings. As the New Economics Foundation have shown, of the 5.6 million workers at high risk of losing their jobs or hours as a result of social distancing measures, more than 1.2 million are living in privately rented accommodation, and thus face serious financial hardship. Research by the Resolution Foundation, looking at exposure to both economic and health risks has shown employed renters are once again facing the rawest deal.

 

Third, the quality of the private rental sector continues to lag that of all other tenure types. It says much about the sector that landlord lobbying organisations have breathlessly celebrated recent finding which show ‘only’ 1 in 4 PRS properties being found to be non-decent, a worse record than both the social and owner occupier sectors. More markedly, 40% of private rental sector homes fail the non-decent home standard for thermal comfort.

 

With coronavirus catalysing the effective suspension of the housing market, and the restrictive nature of tenancy agreements meaning that landlords can evict tenants, yet there is still no way for a tenant to unilaterally give notice to end an assured shorthold tenancy, it is not an exaggeration to note that many tenants are effectively trapped in subpar accommodation. Due to the economic dislocation which is already unfolding, existing support measures absent radical policy to address housing’s power imbalance will make things worse for many tenants.

 

Running a rough, back-of-the-envelope hypothetical helps demonstrate this starkly. Imagine a tenant receives an income of £1200 a month after tax, and their rent comes to £400. In pre-coronavirus times, they are paying 1/3rd of their income directly to their landlord. Now imagine that, due to the impact of coronavirus, they find themselves furloughed – equating, in cases where employers do not voluntarily contribute the remaining amount, to a 20% fall in income. The tenant now receives £960 a month. They are now paying over 40% of their income in rent. There is no way for them to compel their landlord to reduce rents a corresponding amount.

 

Their own purchasing power has been hit, at a point when both economic conditions and societal lockdown mean they are unlikely to be able to either move house or find alternate employment. They are materially penalised by the imbalanced power relations present in an ostensible market which is no longer functioning like a market. This situation, as the New Economics Foundation have shown, is even more dire for those forced to rely on Universal Credit.

 

Clearly, this is not a sustainable or responsible way to organise housing, particularly during a global pandemic. As this crisis has shown, the response to market failure – across social democracies and neoliberal plutocracies alike – is state intervention. Figures released recently show that almost a quarter of the British labour force are on the furlough scheme – the labour market is now effectively on ice, as the state pays wages. Of course, in many cases, that simply means the state is paying people’s landlords. This is not sustainable – across a number of sectors, from higher education to aviation, governments are enforcing strict conditionalities on support. There is a coalition to be assembled around the reasonable assertion that landlords, alone, should not be permitted to sail through this crisis enriched and emboldened. 

 

As a movement, we need to push for rent cancellation, and we need to win. Beyond that, we need to fight for a new settlement for housing after the crisis – one built upon the rapid revitalisation of council housing through a buy-out of the PRS. The PRS – both prior to, and especially during this crisis – has shown itself to be both a sink for public money and an intransigent public health hazard: we need, and deserve, something better.

 

Joe Bilsborough is a researcher at the Centre for Local Economic Strategies.

 

5 May 2020

Reinstate the Planning Committee – Open Letter

We are writing to demand that Manchester City Council immediately return to a democratic decision making process for its planning committee. This means scrapping the delegated powers to make planning outcomes about the future of our city. 

While we appreciate immediate concerns over both the safety of committee members and ensuring that virtual meetings are secure, we do not believe that suspending the committee until the end of November is a just or democratic way for planning decisions to be handled. 

Over the last year many decisions of this committee have been politically sensitive, and the changes to the planning structure risk empowering developers over the people of this city adversely affected by development. 

We believe that it is critical that full democratic structures are in place to scrutinise planning decisions that will have a huge impact on the future of the city – and see no justification for the suspension of normal operations until the end of November. Indeed, we do not think major planning applications should be decided by such a small group of decision makers behind closed doors. 

It is not in the interests of the people of Manchester to allow decisions to be made on Wednesday 29th April nor in the future that do not include the full planning committee or opportunities for the public to participate. We hope and expect that Manchester City Council will change its position.

 

 

Signed,

 

Greater Manchester Housing Action

 

Britannia Basin Community Forum

Chorlton Voice

Climate Emergency Manchester

Common Wealth

Friends of Angel Meadows

Greater Manchester Labour for a Green New Deal

Hamerton Action Group

Manchester Momentum

Platt Claremont Residents Association

Rising Up Manchester

Save New Islington Green

Save Ryebank Fields

Steady State Manchester

The Castlefield Forum

The Northern Quarter Forum

The Public Meeting

Trees Not Cars

WalkRide Greater Manchester

 

Image source.

29 April 2020