Housing

The home secretary claimed streets risked being “taken over” and that without action British cities would see “an explosion of crime, drug taking, and squalor”.

She added that many of those living in tents were “from abroad”. Those who were genuinely homeless would always be supported, she said.

But in a raft of criticism over her remarks, she was accused of “disgraceful” politics and of blaming the most vulnerable for her government’s failings.

Even former Tory MPs condemned her push to fine charities who give tents to the homeless – part of proposals pitched to be included in the King’s Speech on Tuesday.

Major cities have scaled back those requirements in recent years while others like Portland and Minneapolis have gotten rid of them altogether. San Jose, which has only a few thousand fewer residents than Austin, did away with the requirements last year.

Austin City Council Member Zohaib “Zo” Qadri, the proposal’s author, said keeping those requirements makes no sense as the city faces an affordability crisis and pumps billions of dollars into expanding public transit.

“It gobbles up scarce land. It adds burdensome costs to developments that get passed on to renters and buyers. It makes it harder for small businesses to get off the ground. And it harms walkability and actively works against our public investments in transit, bike lanes, trails and sidewalks,” Qadri said Thursday.

Rents have rocketed and property prices are hot, but the Reserve Bank of Australia (RBA) has changed the way it looks at the market and a key analysis panel that examines housing issues has not met for more than a year.

The Housing Market Discussion Group brought together internal experts to share insights on household budgets, the lending markets and the stability of our financial system.

It hasn't met since September 8 2022.

Documents sought through the Freedom of Information (FOI) process reveal the most recent meeting of the group — also known as the Domestic Housing Community Meeting — was one day after the central bank hiked interest rates for a fifth time.

The complaint, filed earlier today by Attorney General Brian Schwalb, focuses on the multifamily landlords' use of software from Texas-based firm RealPage, which suggests rental prices based on a pricing algorithm. Key to those models, according to the suit, is the data fed in from the landlords and the pressure RealPage puts on them to stick to the code-derived rental rates.

"RealPage and the defendant landlords illegally colluded to artificially raise rents by participating in a centralized, anticompetitive scheme, causing District residents to pay millions of dollars above fair market prices,” Schwalb said in a release tied to the complaint.

Advocates for homeless people refer to the planters as “hostile architecture” meant to push the homeless population out of sight. The strategy is far from new: For years, frustrated residents and business owners in San Francisco, and even the city itself, have turned to architecture to prevent encampments on the street — things like planters, boulders or rocky pavement, windowsill spikes, curved or slanted or segmented benches, or even loud music or sprinklers meant to prevent the unhoused from sleeping, sitting or setting up camp in certain public spaces. 

A letter signed by a cross-party group of local authority leaders in England indicates that some town halls in effect face bankruptcy and describes mounting temporary housing bills for homeless households as a “critical risk to the financial sustainability of many local authorities”.

It calls for an immediate cash injection of £100m for councils to provide emergency rent support for families at risk of homelessness, together with an end to the four-year freeze on housing allowance rates and long-term investment in social housing.

“Without urgent intervention, the existence of our safety net is under threat,” says the letter to Hunt, the chancellor. “The danger is that we have no option but to start withdrawing services which currently help so many families to avoid hitting crisis point.”

The worst-hit councils are now spending millions of pounds a year – in some cases between a fifth and half of their total available financial resources – to try to cope with an unprecedented and rapid explosion in homelessness caused by rising rents and a shrinking supply of affordable properties.

The scale of the crisis means smaller councils, often in affluent shire counties, are struggling to supply enough emergency homes to meet their legal duty to support homeless families. Homelessness rates in some districts have more than doubled year on year.

Successive governments that failed to build social housing whilst selling off social housing stock are partly to blame for this.

So, too, are the actions of some unscrupulous landlords.

But the real problem can be laid fairly and squarely at the door of the Bank of England. They forced interest rates up without any evidence that doing so would reduce inflation. So far, the contrary is likely to be the case. And now they are using quantitative tightening to keep those rates artificially high - and well above those that markets might otherwise settle on given the state of the economy.

The result is not just a cost of living crisis.

Nor is it just a massive decline in the financial well-being of millions in this country.

It is also an alarming hike in rents, which are, however, insufficient to cover the costs of some highly-geared (over-borrowed) landlords who are selling their properties as quickly as they can, so increasing the scale of homelessness and disruption, whilst also removing property from the rental housing stock, at least temporarily. It's a perfect storm for the councils involved, and it can only get worse since it is the policy of the Bank of England to maintain high interest rates as inflation declines, which can only make rents increasingly unaffordable whilst forcing more landlords out of business.

I have lived, my whole adult life, through the project known as the property-owning democracy. It was based on the idea that property would make you a better, happier and richer person and responded to the simple, reasonable and powerful desire of very many people to own their home. The property-owning democracy would set you free. For Margaret Thatcher, for whom it was a defining and prodigiously successful concept, it was a “crusade to enfranchise the many in the economic life of the nation”.

So she sold off council houses to their tenants and deregulated and liberalised mortgage markets. From 1980 to 1990 rates of home ownership rose from 55% to 67% of households. At the same time prices rose, almost trebling during her 11-year term. In general Thatcher’s government prided itself on fighting inflation, inflicting heavy costs on employment in an attempt to bring the annual rate down. But with property it was different. Inflation, when it came to homes, was to be celebrated. It was seen as a sign of economic virility, and it made those who had bought feel good. Succeeding governments followed her lead in encouraging both ownership and rising prices. Values more than trebled in the Blair era.

Eventually the inflationary part of the project defeated the ideal of widening enfranchisement. Newcomers to the market just couldn’t afford it, and from the mid-00s rates of ownership started to fall. At the same time the stock of council housing declined. The symptoms of what is now called the “housing crisis” became plainer and plainer – fewer and fewer young people buying, more living with their parents or in rented homes whose prices continue to rise. Private rents are now at their highest level ever, up 20% in some regions over the previous 12 months.

In January 2020 the median home price was $266,300, according to the National Association of Realtors. It's now $406,700 as of July – a 52% increase.

The White House hopes the initiative will alleviate both these problems, creating more housing and revitalizing the commercial real estate sector.

"This presents an area of opportunity to both increase housing supply while revitalizing main streets. It's a win-win," Lael Brainard, director of the National Economic Council, told ABC News.

Conversions are faster than new construction, 20% cheaper, and produce fewer greenhouse gas emissions, the White House added.