Download IUT Report - By Hugh McClung, MBE, Chair of Central Regional

REPORT FROM THE INTERNATIONAL UNION OF TENANTS WORLD
CONGRESS HELD AT WHEATLEY ACADEMY, INGRAM STREET, GLASGOW,
FROM 14TH TO 16TH OCTOBER 2016
ATTENDED BY HUGH McCLUNG, PHILOMENA McCLUNG, MICHAEL
GRIFFITHS AND ANNA JOHNSTON (REPRESENTING STIRLING TENANTS
ASSEMBLY)
The theme of the Congress was “Is control of rents outdated, or a necessity worldwide”.
Friday 14th October 2016
The session was opened at 2.20pm by Lesley Baird, CEO of TPAS Scotland.
Kevin Stewart, Minister for Local Government and Housing, welcomed all international
delegates to Glasgow. Delegates were from such varied countries as Australia, Austria,
Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Italy, Latvia, The
Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Spain (Catalonia),
Sweden, Switzerland - also delegates from England, Northern Ireland, Scotland and Wales.
Bernadette Hewer, Chair of Glasgow Housing Association, provided an outline of social
housing in Scotland, particularly Glasgow.
Sven Bergenstrahle, IUT President, said that Europe needs houses below middle income
affordability. In his country they have a neutral policy in the way of finance – subsidised
housing has prices which limit the effect on the economy, different prices for new households
to enter the market. He said that further rent setting for tenants hampers mobility. Fair rent
laws are required. Deregulation has never resulted in increased construction of housing. He
said it was necessary to have housing where jobs and education exist and called for
Governments to adopt a sound and fair rental market where there were controls on rent
increases and security of tenure – also further rent settings for new tenancies. Europe needs
to adopt laws to strike a balance between landlords and tenants through rent controls.
Sebastian Jolis was standing in for the Deputy Mayor of Paris. He said their target is 7,000
houses per year. He demonstrated different prices for different areas – no social integration.
They need a £3-billion investment for Europe between 2014 and 2020. Legally furnished
flats lead to higher prices. He said they needed a consultation commission but did not
elaborate on this. Rent caps are set by an independent institution. If we set the price for land
it would permit housing for all.
Sorcha Edwards, Secretary General of Housing Europe, was the next speaker and she
said that housing should invest in the community. Most European social housing was built
between 1946 and 1970. There are 43 national/regional federations in 23 different countries
managing 26 million homes. 11% of these are in the EU. Public support for housing in the
EU has decreased from 1.1% per GDP to 0.8% per GDP. Regularisation of social housing in
Europe resulted in 81.5 million Europeans being overburdened by housing costs. People
cannot find an affordable place to live in a nice area. We need to turn empty properties into
social housing and create more social/affordable housing with controls of rent prices. EU
needs 245,000 houses per year – not half that number is being built. New social housing has
decreased by 27% in 2014 onwards, while the waiting lists keep increasing. Monitoring and
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limiting rents in the private sector would lead to more social housing. Affordability in the
private rented sector is affected. Where houses are improved and rents go up it forces tenants
out. Lack of political will to provide social housing is both demeaning and demoralising.
Sorcha then spoke about the prime interests of housing being favoured towards investors
which results in increasing difficulty for first time buyers entering the housing market.
Dr Mary Taylor, Chief Executive, Scottish Federation of Housing Associations,
described the relationship between public sector and private sector housing over the years
from the 1940s to the present time. Since the “right to buy” has stopped there has been more
emphasis on the public sector. However, private rented sector is still growing larger. 1 in 8
of tenant population live in council housing. Government and housing providers have not
been building to meet current demands.
On the Friday evening Glasgow City Council hosted a Civic Reception at the City
Chambers. This was followed by dinner and presentation of awards to special
European delegates.
Saturday 15th October 2016
Session commenced at 09.00 with the speaker being Barbara Steenbergen, IUT Head of
Liaison Office to the European Union. She said social housing is considered to be for
disadvantaged citizens which is a very dangerous precedent set by EU definition. The IUT is
trying to change this for the benefit of all citizens. We need agreements in new financing
methods for affordable housing because everyone has a fundamental right to housing. 27% of
tenants in the EU spend 40% of their net income on social housing. The target for 2020 is for
lifting 20 million people out of poverty. Maastricht Treaty indicated there should be a 3%
threshold per GDP for national investment housing programmes. There must be investment
in social housing. Energy costs pose a direct threat to rent costs when buildings are renovated
and costs incurred in the renovation are passed directly onto the rent charge. We require in
Europe a guaranteed public investment in energy efficiency and savings. ERDF allows 20%
spend for refurbishment in housing. Scotland was first to sign up to the ERHIN. Definition
of social housing is not just for the disadvantaged.
The next speaker was the representative from Living Rent. The Private Rented SectorRent
campaign started in 2014 to amplify the voices of renters in Scottish Government policymaking which has led to the launch of the UK’s first tenants union with a focus on the private
sector. Aim is to have strict controls over tenancy agreements and rent levels in the UK. In
Scotland the Scottish Government has already started a plan to secure properly legislated
tenancy agreements. However, we are no further forward with appropriate rent charges
which are hampered by restrictions in rent levels when applying for rent allowance or
housing benefit. The campaign reached impasse in 2014/15 when we campaigned with others
to the Scottish Government to put in place controls over rent charges in the private rented
sector. Scottish Government would not give assurances that this would happen. We are still
campaigning in the hope that some measures to restrict rent charges will be put in place, but
we are grateful for the introduction of the new tenancy agreement.
Dr Marietta E A Haffner, Delft University of Technology, The Netherlands, said that
they required 3 steps towards control over private rented sector and rent regulation. General
trend is to have less regulation which enables a free-for-all with the investors who build
anywhere with no consequence of social impact. What is required is 3 steps – first step is a
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rent freeze, second step is rent regulation with inflation rises only, and third step is rent
increases controlled within tenancies but not between tenancies. She said there was an
impact of rent controls – inefficiencies create a cost for landlords and they are no longer
willing to invest. On the welfare side there is always Government intervention and this
creates marked imperfections.
OECD (Organisation for Economic Cooperation and Development) states more controls are
needed over rent levels. Stricter rent controls, however, reduce mobility and make housing
markets more volatile. However, Dr Haffner disputed this and said regulation of tenancy
control does not have a direct effect on the market. It does limit the amount of profit gained
by the landlord.
Following a panel discussion moderated by Penny Carr, CEO of Tenants Union,
Queensland, Australia and an Open Forum for delegates to deliver presentations, the
European delegates were invited to visit Housing Projects hosted by Link Housing
Association, Glasgow Housing Association and Hillhead Housing Association.
In the evening a Scottish dinner was provided in St Andrews in the Square – this was
followed by a Ceilidh.
Sunday 16th October 2016
Delegates were invited to visit Auchentoshan Whisky Distillery or to take a Glasgow City
Tour.
Conclusion:
A thoroughly enjoyable event, and to hear delegates from across Europe and beyond was
inspirational. All of us, as tenants, have similar problems and this was a common theme
about having Rent Controls in one form or another.
Our thanks to Stirling Council for the sponsorship to allow four delegates to attend. We
hope you find this report useful.
Thanks also to the IUT and TPAS for allowing us to take part.
Hugh McClung
Anna Johnston
Michael Griffiths
Philomena McClung
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