Letter: Invest in housing for the future

Sir: Polly Toynbee's article on rent levels (21 July) is not far off the mark. The funding regime for our members, the housing associations and trusts, has meant higher rents. I have observed the knock-on effects with growing concern, including a higher housing benefit bill and shrinking incentives for those on benefit to take up employment.

Decent housing is critical to the success of policy areas ranging from social security and health to education and law and order. The Government's flagship policy, its welfare-to-work initiative, will face an unnecessarily uphill struggle if those coming off benefit find their increased income swallowed by housing costs.

The last government White paper, Our Future Homes, showed that between 1979 and 1994 we continued to spend pounds 18bn on all forms of taxpayer support for housing, but the switch from bricks and mortar to personal subsidy meant significant investment cuts, rocketing benefit bills and the poverty trap so eloquently described in Polly Toynbee's article. The technical complexities of rebalancing subsidy arrangements are huge, but we must start with clear strategic objectives. Investment in homes rather than benefit must be a priority, lowering housing costs and creating an environment more likely to let people flourish.

Housing cries out for decent funding. The Government has made a welcome start, by releasing local authority capital receipts. Those of us who work in housing would urge the Government to think now about a long-term strategy to ensure that the nation is housed adequately and affordably.

J E COULTER

Chief Executive

National Housing Federation

London WC1