Memorandum-to-the-Prime-Minister-on-Unaffordable-Housing

The shaded boxes along <strong>the</strong> bot<strong>to</strong>m of <strong>the</strong> diagram identify <strong>the</strong> five process stages in <strong>the</strong> production and use of
any housing unit in a ‘developed’ economy.
Stage 1 is Promotion (<strong>the</strong> decision <strong>to</strong> produce a housing unit)
Stage 2 is Financing (finding <strong>the</strong> money <strong>to</strong> produce it)
Stage 3 is Construction (building <strong>the</strong> unit)
Stage 4 is Allocation (allocating and reallocating it <strong>to</strong> a user)
Stage 5 is Management in Use (maintaining and managing <strong>the</strong> unit during its lifetime)
At <strong>the</strong> end of Stage 5 is End of Life when <strong>the</strong> useful life of <strong>the</strong> unit ends and it is subject <strong>to</strong> closure and/or
demolition.The rate of closure (or perhaps redundancy) of housing units, nationally, regionally and locally,
sends ‘feedback’ signals <strong>to</strong> Government departments and via <strong>the</strong>m <strong>to</strong> <strong>the</strong> institutions that promote new
housebuilding and so <strong>the</strong> process begins again.
In <strong>the</strong> case of ‘self-build’ housing (and for much of human his<strong>to</strong>ry) several of <strong>the</strong> stages, possibly all of <strong>the</strong>m,
have been carried out by one person or household. Much more frequently in modern industrialised societies,
and particularly in <strong>the</strong> UK, <strong>the</strong> stages have become segmented and carried out by specialist institutions.To this
extent control over housing provision has been almost <strong>to</strong>tally expropriated from <strong>the</strong> user and vested in large
institutions, both public and private, against which opposition is necessarily individual ra<strong>the</strong>r than collective.
The planning, regulation and funding support for housing in <strong>the</strong> UK are ultimately responsibilities of
Government (<strong>the</strong> box along <strong>the</strong> <strong>to</strong>p of <strong>the</strong> diagram). But <strong>the</strong>se interventions are complex and mediated through
an institutional framework that has evolved over several centuries.The institutions fall in<strong>to</strong> three main sec<strong>to</strong>rs,
or sets of ac<strong>to</strong>rs (<strong>the</strong> three rows of fives boxes in <strong>the</strong> middle of <strong>the</strong> diagram and labelled on <strong>the</strong> left).These
sec<strong>to</strong>rs are <strong>the</strong> Private Sec<strong>to</strong>r, <strong>the</strong> RSL Sec<strong>to</strong>r and <strong>the</strong> Council Sec<strong>to</strong>r.
Motivational distinctions
There are vitally significant motivational distinctions between <strong>the</strong>se sets of ac<strong>to</strong>rs in that <strong>the</strong> Private Sec<strong>to</strong>r is
profit-driven, <strong>the</strong> Council Sec<strong>to</strong>r is public-service driven and <strong>the</strong> RSL sec<strong>to</strong>r is driven by a hybrid of charitable
and commercial motivations.
Conventional wisdom glosses over <strong>the</strong>se motivational distinctions.There is an expectation that <strong>the</strong> Private
Sec<strong>to</strong>r can be driven partly by public-service considerations when such a belief is contrary <strong>to</strong> <strong>the</strong> statu<strong>to</strong>ry
responsibilities of Boards of Direc<strong>to</strong>rs <strong>to</strong> place shareholders’ interests above all o<strong>the</strong>rs.
Where does responsibility lie
Our central argument is that in <strong>the</strong> highly sensitive issue of housing <strong>the</strong> recent increase in <strong>the</strong> ratio of profitdriven
<strong>to</strong> public service motivations and activity has produced regressively redistributive effects that are leading
<strong>to</strong> pervasively costly social, welfare and economic consequences. It is not appropriate <strong>to</strong> place ‘blame’ for this
on profit-driven institutions since <strong>the</strong>y are simply acting in accordance with company law and commercial
practice.The ultimate responsibility <strong>to</strong> ensure an appropriate mix of motivations and activity in <strong>the</strong> housing
sec<strong>to</strong>r so as <strong>to</strong> serve <strong>the</strong> needs of all members of society lies with Government.
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Zacchaeus 2000 Trust - <strong>Memorandum</strong> <strong>to</strong> <strong>the</strong> <strong>Prime</strong> <strong>Minister</strong> - May 2005