Action team spells out radical options to tackle decline
A Whitehall team has spelt out the "fundamental change of approach" required by councils and housing associations if they are to prevent an "accelerated spiral of decline" in the areas they run.

The result of the most radical and far-reaching of the Social Exclusion Unit's action teams, released this week, looks to have anticipated much of the forthcoming housing Green Paper. The unpopular housing report calls for a sea change in the relationship between landlords and tenants.

The report, which was written by the most senior civil servants in charge of housing and warmly endorsed by ministers, calls for market rents on some social homes to create more mixed communities; a more open allocation system to free up social housing for key workers and students; and pilot schemes to advertise tenancies.

Some of the other 37 recommendations include giving social landlords more scope to offer temporary tenancies, the promotion of intensive housing management, tougher planning laws to prevent over supply, and an end to annual bids for cash.

The report also spells out the extent of the low demand problem, which at the launch ministers admitted is likely to get worse before it gets better. The report stresses that low demand affects all housing sectors. But it explains that because of the older age profile of tenants and the popularity of owner occupation the problem is particularly acute for the social sector. Pockets of low demand are highlighted right across the country, not just in the north. Senior officials on the team described the "breathtaking speed" in which areas were abandoned.

Speaking at the launch, housing minister Nick Raynsford said: "Old assumptions about allocations, rents and the relationship between landlords and tenants will need to be rethought not just in areas of low demand, but right across the country."

But he urged housing providers to be optimistic. "If this does inspire councils to market their product rather than stick to their old gate-keeping role it will have a marked impact on the whole housing world generally not just on the issue of low demand."

Neighbourhood renewal minister Hilary Armstrong denied that the government was over reacting to low demand. "It is not a policy obsession - you can't sort out problems unless you face up to them. This is an exciting but incredibly challenging report."