Discussion Document - Real Social Housing

Introduction

For the past 150 years socialists and the left in Britain have attempted to put into place housing which is democratically controlled, not subject to the whims of landlords and of a high standard.  Real socialism requires that people control their communities and workplaces directly democratically, and that private property is removed from existence.  It will therefore be a major step forward towards this aim for working people then to achieve control over our housing.

The first attempts (in London in the 1870s and 1880s) to achieve social housing led to calls to establish community land trusts.  Land Trusts are a legal framework which have existed in law since the beginings of the enclosures, and although there are a number of permutations, the theory went that such organisations can start to take a foothold in the housing market and eventually begin to replace private landlords.

Tom Wetzel of the WSA, who proposes land trusts as a model for achieving social housing in the USA writes of CLTs:-

The residents own the buildings but the CLT retains ownership of the land. This is how decommodification of housing is enforced. The dwellings on the CLT land cannot be sold at whatever price the market will bear. Instead, there is a clause in the ground lease that enables the CLT to buy back the dwelling at a restricted price if the resident wants to sell it. The CLT thus enforces the community's interest in preserving the affordable housing.

Wetzel draws a distinction though between CLTs and other US forms of social housing.  He differentiates from housing supplied by Community Development Corporations (which bear some resemblance to the Housing Associations of today in the UK) to that of CLTs by saying:-

[M]ost non-profit housing development in the USA has been done by community development corporations (CDCs) that build rental housing. These vary considerably among themselves but many are lacking in democratic accountability to the tenants or the communities where they operate. Often their boards of directors are self-perpetuating, presiding over the staff with a corporate-style hierarchy. Generally the tenants in their buildings have the same sort of relationship to the CDC landlord as tenants in private, for-profit rental buildings. Sometimes even the commitment to permanent affordability is lacking. [...] The community land trust model works within the legal framework of home ownership, while modifying it, as a way to implement resident self-management of buildings, and community self-management of real estate development, within the context of the existing capitalist society. The model of "fee simple" ownership for land and housing has been historically favored in law and policy in the USA. Land and housing are commodities, bought and sold for the highest price that a willing buyer will pay to a willing seller. The capitalist investment cycle in the built environment is founded on this commodity status of land and buildings.

The fee simple model of home ownership is really a bundle of rights, which give a variety of advantages to owning a dwelling. You can control the space where you live, you can customize or remodel the interior to suit yourself. You're freed of the whims or intrusions of a landlord. A fixed-rate mortgage frees you from periodic rent increases. If you own a detached house, you can build an addition or remodel the exterior, and yard space is available for play, for gardening. On the other hand, the status of a house as a commodity means that the house can be used as an investment, a way to profit from appreciation in market value. In the CLT model these components of home ownership are separated. First, residents don't own the land under their buildings. The land is permanently taken off the market. Second, the right to profit through speculative investment is removed by placing a permanent restriction on resale price on the dwelling. Some of the components of ownership are retained - security of tenure and right of control over your own space.


There are however other forms in which social housing can take.  More familiar to most on the left in the UK is the phenomenon of Council Housing.  It's not unique to the UK.  In Vienna workers movements forced the building of mass public housing.  In the UK public housing was built not in one period, but in several, and what council houses remain from the periods of house building reflect the different priorities and social policies of the authorities at the time of construction.  As such council housing can vary dramatically in quality, distribution, size and type. 

During the 70s the development of tenant management co-operatives emerged in Glasgow to challenge the bureaucratic systems of council landlords, who would not spend money on investment in peoples homes.  They were soon a widespread phenomenon, although initially radical (in Easterhouse rent was paid not to the council but to the TMC, who carried out much needed investment) they became increasingly bureaucratic, and recuperated as an organ of asset management for the landlord.  Many advocate a return to council housing with TMCs as a solution to areas which have seen stock transfer (where council housing is transfered to an Arms Length Management Organisation or a Housing Association).  Stock transfer of council housing is UK government policy, and is widely seen as being informed by neo-liberal ideology(1), which sees "services" such as housing as being incompatible with the role to be attributed to the neo-liberal state.



Overview

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General Section


Specific Section (Proposed Action on the GHA)

[TBC later tonight]