Flogging Off the Future

They’re at it again!  Housing Associations, so-called “social landlords” (annual surplus last year £3.5 billion), are flogging-off social rented homes.  The Chartered Institute of Housing has recently said 165,000 homes for social rent have been lost since 2012 and the figure is set to rise.  Privatisation takes many forms, but this is one of the most grotesque.

17 Robinson Road, round the corner from where I live (it’s in Bethnal Green, not Hackney – shows how much they know!), is one of 56 homes owned by Housing Associations (HAs), councils or other public authorities going under the auctioneer’s hammer in the next two weeks (with thanks to Peter Denton for the research).  15 of them are being put up for sale by Peabody, who made a surplus – i.e. profit – of £175 million last year.  Another 4 are being sold by Family Mosaic.  Peabody and Family Mosaic recently formed a merger, one of many in the corporate HA sector.

There are about 4,500 families on the Tower Hamlets waiting list for a home like 17 Robinson Road.  It’s a particularly nice house (formerly owned by the Queen as part of the Crown Estate, before she flipped it to Peabody) in a great neighbourhood, with schools, shops, Vicky Park and transport links on the doorstep.  Getting the keys, with a permanent tenancy and a social rent, could be life-changing for a family who might currently be suffering in temporary, overcrowded, overpriced housing.  These are the people social landlords are supposed to be working for.  Instead, Peabody, whose Chief Executive Brendan Sarsfield had a reported salary last year of £278,750,  are feeding the speculative property market.

If 17 Robinson Road is sold at auction, probably at a knock-down price,  it will either be resold, or more likely, rented privately.  The average price for a 2 bedroom home in Tower Hamlets is £580,000, the average rent is £360 per week.  No chance for the people on the council’s waiting list.

The auction on 26th Feb will be carried out by BidX1, an Ireland-based company.  A UK private equity house, Pollen Street Capital, recently bought a big chunk of BidX1.  Pollen Street Capital used to be the private-equity wing of the formerly publicly owned Royal Bank of Scotland (RBS).  They are looking to extend their activities in to buying “distressed assets” – i.e. people’s homes – in other countries, particularly Greece, Spain and South Africa.

Peabody is happy to play a part in this Great Gatsby-like parable of greed and stupidity.  The housing casino has already done enormous harm around the world, with Ireland and Spain among the most damaged.  RBS was one of several banks bailed out with £1 trillion of our money because of their reckless investment in the property market.  Instead of learning from these mistakes – and perhaps even making amends for them – Peabody and other corporate HAs are helping spin the wheel again.

There’s a very clear alternative path.  17 Robinson Road and all the other social rented homes due to be flogged-off should be immediately removed from sale and made available to the next eligible families on the waiting lists of their respective boroughs.

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Shelter’s vision for “social” housing has a blind spot

Last Tuesday, I attended the launch of Shelter’s report “A Vision for Social Housing”.  First, the good news.  The recommendations significantly out-bid other mainstream policies, including those of the Labour Party.  The report calls for a 20 year programme to build 3.1 million “social’ homes, with investment of £10 billion a year.  Labour’s housing Green Paper only commits to spending £4 billion.  The current government has committed only £2 billion for “social housing” over the next 10 years.

The report makes an irrefutable argument that building the homes we need would pay for itself (within 30 years) through savings in Hosing Benefit and the many other costs resulting from the false economies of current policy.  Shelter is also calling for a broad political alliance to ensure that building the homes we need isn’t derailed by changes of government, or other political events like Brexit.  As one of the report’s commissioners, Jim O’Neill, quite rightly said, there are no excuses and it was refreshing to hear both Ed Miliband and Sayeeda Warsi admit they hadn’t done enough when they had more political clout.

The report was prompted by the Grenfell atrocity and there are some important measures suggested for ensuring that, as Doreen Lawrence puts it, tenants’ lives are never again put at risk due to “institutional indifference”.

There were repeated assurances that the report would not be allowed to gather dust and would lead to action, but worryingly, when asked, there didn’t appear to be any clear strategy for how this would happen.  Nonetheless, Shelter is a respected, influential voice, so this report could be a significant breakthrough moment.

Here comes the “but”.  Shelter has effectively air-brushed council housing and its specific identity out of the past, present or future.  The report goes into considerable detail about the causes and consequences of the housing crisis, with the fundamental, if obvious, conclusion that we’ve not been building enough new homes for people with low or moderate incomes, what Shelter refers to, misleadingly, as “social housing”.

With others, for years I’ve insisted on making the distinction between council housing and other forms of non-market rented homes.  This is not a semantic, academic or peripheral issue.  It’s absolutely critical to answering the question Shelter puts: “How have we got here?”

It’s disappointing that the report appears to deliberately manipulate data to present a distorted impression of post-war housing.  At the launch, Ed Miliband rightly drew attention to the country’s astonishing house-building achievements after 1945.  But it was, emphatically, council housing, not “social housing”, that carried the load.  Of the 860,870 homes completed in the UK between 1949 and 1952,  82% were built through local authorities.  The proportion of new council homes reduced over subsequent years, but was still over half of total output until 1959.  Throughout this period, the number of new housing association (HA) homes built a year averaged 4%.  Council housing continued to average over 40% of new homes built a year from 1960 – 1980, while the average percentage of new HA homes stayed in single figures.  During the four decades after the war, local authorities always built at least 110,000 homes a year

The Shelter report makes no mention of any of this.

Council house building has virtually dried-up since the 1990s.  Meanwhile, HAs have been promoted, by all governments, as the monopoly providers of non-market rented homes.  But they have never come near filling the gap.  The high-water mark of new council homes was 1953, with 245,160 homes completed.  HAs have never built more than 40,000 a year, or exceeded 22% of total output.  An increasing proportion of these homes have not been for social rent.  In 2016, approximately one-third of the 30,000 homes completed by HAs were built by the “G15” of big London-based organisations.  Of these, only 14% were for social rent.  28% were for so-called Affordable Rent of up to 80% of market level.  28% were for full market rent or market sale.

Again, the Shelter report is silent on this.  There is only muted, implied criticism of the role of HAs and their creeping – in some cases, galloping – commercialism.  Instead, the big HAs’ line that they’ve been reluctant to make their corporate shift is repeated, when in fact, they have actively lobbied for it.

This is about policy, not politics, although of course, the two are symbiotic.  By failing to acknowledge the true role of council housing, Shelter are ignoring the sharpest tool in the box.

 

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Streets Paved with Gold

I’m very flattered to be quoted by David Harvey in his paper “Universal Alienation and the Real Subsumption of Daily Life under Capital: A Response to Hardt and Negri” (sorry, I can’t add the link, but it’s well worth a read and available on line, reference tripleC 16(2): 449-453, 2018).  In it, Professor Harvey skewers the ideological and economic stupidity that underpins our approach to housing.  He describes the shift from the home of his 1950’s childhood as a place ” to eat, sleep, socialise, read stories, do homework or listen to the radio” to the neoliberal world of homes as an “instrument of speculation” in which “there should be no social housing at all”.  Some of his housing facts are a bit off, but I’m not going to nit pick about that and certainly not with one of the world’s most eminent Marxist scholar’s overall argument that these forces represent a fundamental shift in the pattern of capitalist accumulation, producing (among other things) new forms of alienation.

There are many symptoms of neoliberal housing neuralgia and for me, some of them are illustrated by this photo, taken round the corner from where I live.  Our area is an epicentre of the type of speculative accumulation of the type David Harvey describes, with all its attendant social contradictions and tensions, some of them captured by this image.  Late Victorian/early Edwardian homes, including the one I live in, have become huge financial assets, embodying numerous meanings beyond their basic function as shelter.

Artists are key arbiters of today’s East End.  This lane was refashioned earlier this year to restore its cobbles, at a cost of £100,000 – approved and administered by Tower Hamlets Council, paid for by Transport for London.  In a quixotic moment, I tried to challenge this flagrant inversion of spending priorities.  I was told what was being achieved was the restoration of an unusual “traditional streetscape”.  I countered with the argument that all our streets could be excavated to produce the same effect, but soon realised I was fighting a losing battle against fake historicism, as well as vested bureaucratic, financial and political interests.  But part of my anger was fuelled by the thought that the exchange value of the private homes and artist’s studios along the lane had been enhanced by thousands of pounds at public expense.

Not long after, I noticed that what I assume to he one of the beneficiaries had painted one of the street-stones gold.  I find a lot of the art that surrounds us too arch to understand or care about.  But in this case, I thought ‘You’re just taking the piss!”

Another poignant feature of the photo is that at the end of the lane is the local homeless services department, named after a man (Albert Jacob) who saw council housing as the key to resisting the universal alienation described by David Harvey.  It’s a tragic irony that Albert’s name now denotes our failure to preserve his beliefs.

But there’s another luminous street that may lead to different conclusions.  Dorothy’s Yellow Brick Road led to a shimmering city founded on illusion where she was reminded of the true value of Home.  Perhaps we’ll all take a step along a similar journey in 2019.

Happy Christmas.

 

 

 

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Dear Cleveland

Dear Cleveland,

Thanks very much for your hospitality during my recent short visit.  When I told people I was coming, the responses were some combination of “where?” and “why?”  One week isn’t enough to get more than a fleeting impression of a place you’ve never been before.  But it was enough for me to know that, even if I never come again, you’ll always have a place in my heart.

You seem to wear the prejudices and stereotypes of “Rust Belt City” with defiance.  There’s a football club (round ball) from London whose fans sing “Noone likes us, we don’t care”.  I think you might identity with that.  A sense of collective identity was very obvious in the Muni Lot car park before the Browns game on November 4th.  I’ve been to many sports events, in many places, but I’ve never experienced anything like that.  Sport in general and American football in particular face lots of criticism, much of it justified.  But what I witnessed that morning felt like an organic, creative, self-organised expression of authentic community spirit of the type politicians and policy makers talk about, but can never artificially recreate.  Sceptics might ask about whether the demographic mix reflected that of the city, the macho and beer culture or the tribalism.  I thought all of them were reasonably in proportion – and now the team’s doing a bit better too!

I’m addicted to the sports opioid of the masses, but the warm feeling I got at Muni Lot can’t fully mask some of your problems.  I know Cleveland was hit hard by the 2007/08 Great Recession, but I’ve also heard it said you never fully recovered from the Great Depression of the 1930s.  You bear the scars of both in an astonishing urban landscape.  I rode the RTA out of downtown and within two miles, felt like I was in the countryside, with trees brushing the train’s windows and houses looking like isolated rocks on a retreating tide.  You almost fulfil Frank Lloyd-Wright’s misanthropic vision of a “Disappearing City”.  I know you were victim to the misplanning of “white flight highways” that’s left such a toxic legacy in so many US cities, compounded (as in your case) by community destroying and “negro removing” urban renewal projects. The magnificence of your 1903 Group Plan buildings and Terminal Tower (now one of my favourites) is denuded by their arid environment.  This depopulation is even starker in some of your inner suburbs.  I walked for hours in the neighbourhoods around Lorain Avenue, West 25th Street and Kinsman Road and felt alone.

Your civic pride is partly based on a glorious past.  I’ve been known (perhaps after a drink) to refer to the US as a capitalist body with a socialist heart.  That might sound hopelessly romantic or optimistic, especially now, but I stick to it, partly because I know the story of places like Cleveland.  It’s fake history to suggest municipal socialism is alien to the US, even if it isn’t named as such.  For over a century, you’ve tried to temper the excesses and brutality of the profit system with care for its victims.  You pioneered public housing, education, transport and utilities.  I’d like to respectfully suggest that this tradition could be the route to your future.

Being “unfashionable” has its advantages.  So far, you seem to have been mercifully spared the worst excesses of private property-led urban regeneration projects.  You probably have your share of civic boosters who think that’s a bad thing, but I don’t.  Rebuilding our post-industrial cities through the obsessive pursuit of a rising housing market is inherently unsustainable and only deepens social and ethnic cleavages.  Sub-prime should have taught us that, but many places are repeating the mistakes.  I see it all the time here in London.

There’s a different path based on Cleveland’s past.  You’re the crucible of US public housing (let’s ignore the competing claims of New York City and Atlanta for now).  I was delighted to meet some of the people from Cuyahoga Metropolitan Housing Authority (CMHA) and to visit some of Cleveland’s public housing.  Of course, after decades of systematic disinvestment, there are serious problems, as there are with public housing everywhere.  But remember why you started building it in the first place – because the market was failing, just as it is today.  To use the management jargon, while walking around Lakeview Terrace (completed 1937), I had a sense of a solution, not a problem.  Leaving aside the architectural qualities and the obvious need for improvements, I thought about the thousands of Clevelanders for who this place was – and is – a lifeline.  CMHA carved out chunks of an increasingly unequal city and preserved it for homes that could be afforded by the people who built it.

Instead of squandering this valuable bequest, through various forms of privatisation, why not build on it?  People need homes that aren’t at the whim of property speculation.  A new generation of Cleveland public housing could be the cornerstone of making you the first post-gentrification eco city.  One of the tragedies of US public housing is how it embedded racism and exacerbated social polarisation.  It doesn’t have to be that way.  Instead of the fabled “mixed communities” of vacuous current policy, UK council housing was conceived as – and for many years was – a place where people from all kinds of backgrounds could live.  We need to rebuild that concept.  You never had it.  But at a time when both our nations are so divided, we could join in finding a way beyond our cities being the playthings of profiteers.  As Lewis Mumford put it, we could “Forget the damned motor car and build cities for lovers and friends”.

In the meantime, wishing you a happy Christmas and a peaceful new year.

Lakeview Terrace

Muni Lot car park

 

 

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Midterm Blues

Tomorrow, Americans go to the polls, except most of them wont. There’s a theory that the mid-term elections could be the beginning of the end for Trumpism. There might be a “blue surge” for the Democrats that prevents #45 from advancing his reactionary agenda further if the Republicans lose control of the levers of political power in DC. There are two immediate problems with that. First, it rests on an assumption that political power derives solely from democratic institutions and second, a lot of the damage has already been done. The appointment of conservative, lifetime-serving Supreme Court judges is the most obvious sign of this, but there are others.

But probably the biggest reasons Trump will visit the same city I’m in today feeling brashly confident are that 60% of the electorate wont vote tomorrow and many of those that will don’t have strong enough reasons to vote against him.

Cleveland isn’t necessarily the ideal place to forecast tomorrow’s election, but all politics is, to a degree, local and especially in a country as vast and diverse as this.

The city is rock-solid Democrat, but in a state (Ohio) that is Republican controlled and largely rural. This urban/rural divide is a fundamental feature of US politics. But even here, there’s the view that Trump is delivering for the Rust Belt. From a different perspective, I’m writing this from an almost exclusively African-American neighbourhood. I was just in a local cafe. They weren’t watching Fox or CNN. They were watching a DVD of speeches by the Prophet of Division, Louis Farrakhan.

Underlying all this, of course, is the virtual absence of a credible political alternative which, for now, would have to come from the Democrats. Although there are some places where more progressive candidates are making the running, overall it still feels like the party is fighting a loosing internal battle between the ghosts of Obama and Clinton. Very sadly, the ghost of Sanders doesn’t seem to be at the feast.

A counter argument to this pessimism is one I heard yesterday,, perhaps surprisingly, while “tailgating” before an American football match, often (with some justification) seen as a bastion of Trump-like bigoted nationalism. But someone I was talking to said there will be a silent rebellion tomorrow. In particular, he predicts that suburban women will take the opportunity to metaphorically slap the abusive misogynist’s face.

I hope he’s right. But even if he is, that will only be a silent majority of a voting minority. For what it’s worth, I predict stasis, which would be a terrible result.

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Cleveland: First Impressions

Getting to know a city for the first time is one of my greatest pleasures. I’m prepared to suffer for it a bit sometimes, with long walks made longer by getting lost. That’s what happened when I arrived here: several hours trying to find my digs through the almost deserted, early evening streets of western Cleveland. Long, straight roads lined by low-rise family homes and shop-fronts showing few signs of life. The semi-suburban feel belied that I was barely two miles from the centre of a city that, 100 years earlier, was the fifth largest in the US.

These first impressions of Cleveland aren’t conclusive, but I’m beginning to think they may be definitive. Some of the city’s story is very familiar, but the marks of industrial capital’s rise and fall seem very pronounced compared to other cities I’ve been to.

In 1800, the place named after Moses Cleaveland (note spelling and my previous post) had 1 (one!) permanent resident. Mr Cleaveland was the agent for a corporate land-grab. From a distance of 500 miles and sight unseen, the Connecticut Western Reserve Company claimed ownership of tracts along the shores of Lake Erie and the Cuyahoga – a native-American name for bending river.

Generously, these indigenous people were permitted (i.e. compelled) to live west of the Cuyahoga, meaning early development was restricted to the east side of the river, though not for long. Canal construction in the 1820s and 1830s quickly swelled Cleveland’s (by now with its more familiar spelling) economy and population. A  common pattern of mass economic migration, exploitation and poverty ensued.

But by the turn of the 20th century, Cleveland was beginning to show signs of difference. Today, the city’s baseball stadium is named Progressive Field. Sadly, this is corporate branding by a local insurance company (the team is called the “Indians”, another very dodgy piece of cultural appropriation), but could also be an allusion to Cleveland’s pioneering urban policy. This was embodied by Tom L Johnson (see photo below), its mayor from 1901 to 1908. Johnson was, in effect, a municipal socialist, though he probably wouldn’t have answered to the name. He introduced a low-cost public transport system (he thought it should be free), alongside several other public services (today, the city’s bus routes – like its sports stadiums – appear to rely on corporate sponsorship). Johnson was also a believer in the principles of Henry George, who wanted to remove housing from the nexus of private land ownership.

George’s theories still influence some contemporary debates about how we provide the homes we need. For Cleveland in the 1930s, part of the answer was public housing. Perhaps inheriting some of Johnson’s vision, the city was the first in the US to establish a Public Housing Authority (PHA). This response to the Great Depression happened across the country, leading to the building of one million non-market rented homes, some of the first in Cleveland.

Among the early tenants were the Stokes family, more Cleveland firsters. In 1967, Carl Stokes became the first African-American mayor of a major US city, with a reforming agenda that persuaded people of all ethnicities to vote for him.

Cleveland has shared the fluctuating fortunes of other cities. The forces of white-flight suburbanisation seem to have been particularly strong here (although the adjoining municipality of Shaker Heights was one of a few that actively resisted ethnic segregation). There’s the sense of a city turned inside-out. Despite the inevitable civic booster claims of an urban renaissance, downtown Cleveland is eerily quiet (pun intended) particularly after dark. Social animation and vitality have moved out.

Cleveland is now associated with the so-called Rust Belt. With that label in mind, I was surprised to see a big steel plant still operating, quite close to the city centre. It’s also quite close to a massive retail park, a strange juxtaposition of production and consumption economies. Another sign of the city (and the nation) is that the main employer now is the ill-health industry, with several massive factory-like hospitals – and recorded adverts on the buses offering people $400 a month to sell their blood plasma.

This links to another ‘first’ for Cleveland. By several evaluations, it’s the poorest city in the US. Approximately one-third of the population live below the official poverty line. On Monday, Trump’s due here on the stump, but I doubt he’ll have anything to say about that. There are many hopes of an imminent ballot-box backlash against his populist bigotry. I’m very sorry to report that, so far, I’ve seen no signs of it here. If I didn’t already know the mid-term elections are on Tuesday, I wouldn’t have heard about them on the streets of Cleveland.

 

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Cle(a)ve-land

I’m sitting at O’Hare airport, Chicago, awaiting my connecting flight to Cleveland, Ohio, about 300 miles due east, on the shores of Lake Erie. It’s a place I’ve never been. But its name, with a slight spelling adjustment, seems to describe the country I’m now in.

I’ve visited the USA many times since my first in 1986. The nation appears more troubled and divided than at any time since. On that first trip, as a naive 21 year-old, I was shocked by the physical decay and latent violence of New York City. Only later did I learn that the city, like many others in that period, was recovering from virtual bankrupcy, with consequent impact on public services and levels of poverty and anger.

During subsequent trips, I’ve come to appreciate that, as with people, there’s much more to America than the worst things it does. I still hold to that. But then came Trump.

Two days ago I was attending a vigil in Cable Street for the victims of a one-man anti-Semitic pogrom in Pittsburgh. A few days earlier, a de facto lynching took place in Kentucky. America’s long history of racism (in which housing has played – and continues to play – a very significant part) may be entering a new phase.

But these acts of appalling bigotry and violence don’t define the US, any more than #45 does. Once again, I’m going to be testing that optimism over the next week, which includes the mid-term elections. I know very little about Cleveland, so I’m looking forward to another slice of American pie. Watch this space.

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