With the average age of first-time buyers being 37 and expected to rise to 40, it’s perfectly clear that the current housing system needs to be changed. Hefty deposits, the difficulty in securing affordable mortgages from lenders, and the overall lack of good quality housing are among the main reasons that have attributed to the continuous rise in the average age of first-time buyers.

For many people, the dream of buying their first home has been put on the backburner, and the only remaining options are to either move back in with their parents or to rent a property for over a long period of time with the aim of saving up enough money for a deposit. Despite this, the idea of home ownership still remains the ultimate goal for the vast majority of people in the UK.

The UK has, after all, been traditionally dominated by two types of housing tenure models, namely that of owner occupation with or without a mortgage and that of rented accommodation either privately or from a social landlord. In other parts of the World however, there is a third form of housing tenure which seems to be growing rapidly in support; this being housing co-operatives.

Under a housing co-operative tenure, members of that co-operative have the collective power to manage the accommodation between them. This involves taking responsibility for duties such as arranging repairs, maintaining the property, and making decisions about the rent. As the decisions are made by the members, the principles of both community ownership and democracy are placed at the very heart of housing co-operative models.

There are strong co-operative housing sectors in countries ranging from Sweden, Norway, Canada, Austria and Turkey, to name but a few.  In Sweden for example, two large co-operative organisations provide over 750,000 homes which equates to around 18% of the total population of the country living in co-operative housing. In Canada, which began developing housing co-operatives in the early 1970’s, there are now over 400,000 living in Co-operative homes.

To put these figures into a domestic  perspective, there are more co-operative housing homes in just Vancouver alone than in the whole of the UK, with housing experts estimating that less that 1% of people in the UK live in a housing co-operative.

The idea of introducing and developing housing co-operatives in the UK is not a new one. In fact, the idea was previously considered by the former Conservative Government of John Major back in 1992. The then Government asked the management consultants, Price Waterhouse Coopers, to investigate both whether or not housing co-operatives generated a greater level of personal and social benefits in comparison to traditional housing tenure provisions, and also whether housing co-operatives would create affordable, long-term solutions for the housing market.

The investigation lead to a report being published by the Conservative Government in 1995 entitled “Tenants in Control: an evaluation of tenant-led housing management organisations”, which, to the astonishment of many, concluded that co-operative housing models not only were cost-effective but also provided their members with a vast number of benefits.

Subsequent reports and investigations into housing co-operative models have since reinforced the findings of the originally PwC report, as well as identified other potential benefits for its members.

For instance, being part of a housing co-operative gives members the opportunity to use existing skills or even develop new skills. They provide members with a stake and vested interest in where they live and can help reduce any dependency tenants have on landlords or the state itself.

In terms of the social benefits, housing co-operatives can help promote community cohesion and integration as well we play a role in reducing vandalism and anti-social behaviour in the surrounding area. In some cases, other community services such as child care and social activities for members arose from being part of a housing co-operative.

On a further note, housing co-operatives give tenants control over the property rents, building services and contractors, and also over any rent arrears. Any surpluses made by the housing co-operative can then be reinvested into the property, depending on the will of the membership.

Despite these considerable benefits, the question inevitably remains as to why we are not seeing co-operative housing models implemented and developed in our communities?

The simple answer to this question is down to our arcane feudalist land and property laws which still exist today. Under the current system, there is what can be described as an “inherent conflict of interest” presumption between the rights of a tenant and the property owner, and as such, does not recognise or take into account housing co-operative tenures, where property is owned jointly by members of that co-operative. The presumption of a “conflict of interest” would hence be absent in a housing co-operative model, as the principles of democracy and commonality of interest are placed at the centre of the model.

In my opinion, the current land and property laws with the in-built perception of tenure feudalism are not only out-dated but present a major obstacle to the establishment and development of the housing co-operative sector in this country. Despite the current situation, there is light at the end of the tunnel.

The Welsh Government’s Minister in charge of housing, Huw Lewis AM, has made it absolutely clear on a number of occasions that he intends to pursue a robust co-operative housing agenda in Wales to help address the housing shortage our country faces, and to do this, the Minister accepts that there must be a change in the current system.

It’s also worth acknowledging the outstanding work being done across the border by the Labour Co-op MP, Jonathan Reynolds, in the form of his Co-operative Housing (Tenure) Bill, which was brought before Parliament in October 2011. This promising Bill, which was introducing under the Ten Minute Rule, seeks to end the feudal nature of laws that govern land and property ownership in England by creating a co-operative model as a new form of tenure. The Bill has received the backing from a number of prominent MPs, including David Miliband, and is due to return to the House of Commons for a second reading on 30th March 2012.

Let’s hope that the UK Coalition Government pick up where John Major’s Government failed and show some real decisiveness and action by getting behind this tremendously worthwhile Bill, which will help towards tackling the distinct lack of good quality housing in England.

What’s clear is that more work has to be done, especially in these difficult financial times, to help people get a foothold on the property ladder at an early age. It’s my belief that the time has come to reach beyond the “traditional” and “conventional” housing tenure options by looking at other alternatives and options to satisfy our housing needs.

Co-operative and mutual housing models provide us with a viable, sustainable solution that has the potential to radically change the way we view and think about housing altogether.

Three things will need to be done in order for us to see housing co-operatives in our communities. First of all, there needs to a change in the current law to make the creation of housing co-operatives easier; secondly, lenders need to be convinced of the security of their lending which may entail a Welsh Government underwrite, and thirdly; housing co-operatives along with the potential benefits they produce need to be promoted and publicised so that people will be enthused into creating and joining them. None of these points are achievable without the political will to achieve it.

With the National Assembly for Wales’ new primary law making powers, changing the law to establish and promote a legally separate co-operative housing tenure is now feasible. We have a determined Welsh Housing Minister that is committed to driving the housing co-operative agenda forward, and I have no doubt that if one person can make this idea of co-operative housing a reality, then Huw Lewis is certainly that person.

The year 2012 is the official UN International Year of Co-operatives; what better way to celebrate and mark this significant occasion than by reforming our out-dated land laws and giving co-operative housing models the legal recognition they deserve on the statute books. Whilst co-operative housing will not solve all of the housing problems Wales faces, I believe it will certainly be a respectable start.

Mike Hedges is the Labour Assembly Member for Swansea East

Friday 2 March at 12.45 pm at the Dundee Contemporary Arts, 152 Nethergate, Dundee

Speakers:

• Sarah Boyack MSP, Shadow Cabinet Secretary for Local Government and Planning
• Cllr Stephen Curran, Glasgow City Council
• Cllr Paul Godzik, Edinburgh City Council
• Cllr Richard McCready, Dundee City Council

Chair:  Helen Eadie MSP

Buffet lunch available

Ahead of the London Mayoral elections, Labour candidate Ken Livingstone today pledged to establish a London energy-purchasing co-operative, helping Londoners save money on their fuel bills by purchasing energy collectively on the wholesale markets.

The pledge was a policy in the Co-operative Party’s manifesto for the London elections launched by Ken last year and builds on our Collective Power model.

Ken said, “I believe the Mayor must act when rip-off energy companies impose huge hikes to Londoners’ fuel bills. I will establish the first ever London-wide Energy Co-operative to provide a cheaper alternative to the big-six and save Londoners money on their bills.” The announcement pledged that a Labour Mayoralty will form a London Energy Purchasing Co-operative to allow customers across London to come together to purchase energy directly on the wholesale market. Individual customers pay a much higher rate for electricity and gas than major commercial customers, such as TfL.

A London-wide energy purchasing co-operative will be a much needed addition to the emerging co-op energy movement, including the UK-wide Co-operative Energy, the alternative gas and electricity supplier, and Brixton Energy who launched their community shares scheme this week.

Co-operative Party General Secretary Michael Stephenson welcomed Ken’s announcement:

“This radical proposal means Londoners will be able to lower their energy bills and help break up the dominance of large energy suppliers.

“By setting up a co-operative, Ken Livingstone would be able to literally put power in the hands of the people.

“Energy co-operatives save money because their principal focus is people not profits. This policy was in the Co-operative Party manifesto for the London election and we are delighted Ken Livingstone is taking action to make it happen.”

Co-operative MP Jonathan Reynolds has been appointed Vice Chair Youth of the Labour Party. Here he outlines how the youth sections of both parties can work ever closer together – and why.

Young members are the backbone of political campaigning, turning out week after week on doorsteps and at events across the country. Young Party members also make vital contributions on policy, governance, fundraising and are the talent pool for future candidates at all levels. We neglect our young members at our peril.

For these reasons the ‘Refounding Labour’ project has led to the return of a position ‘Vice Chair Youth’ for the Party, which I am delighted to have taken on. I will be a strong advocate for young members to ensure that they are properly represented at all levels in the Party, particularly at a time when young people are suffering from the Tory-led government’s cuts to EMA, higher education funding, welfare and the abolition future jobs fund.

As a Labour Co-operative MP I particularly want my time in the role of Vice Chair Youth to lead to even stronger collaboration between Co-operative Party Youth, Young Labour and Labour Students.

All our youth organisations have an important role to play in bringing Labour and the Co-operative Party back to power in Westminster and all are potential routes for new members. By supporting each others’ campaigns and events, we can help each other reach out to those not yet engaged with politics.

I’ve been impressed by the Co-operative Party Youth’s support for the end legal loan sharking campaign, in both Liverpool and London. Just like Labour Students’ campaigns for a living wage, the campaign to end legal loan sharking highlights issues of fairness and social justice at the heart of why we come into politics.

I’d like to see Co-operative Party Youth continue its campaigning alongside Labour Co-operative MPs and young Labour members, especially as we draw towards elections.

I would encourage young members to get actively involved with the Co-operative Party Youth by contacting their regional rep and turning out to support events and local campaigning.

I’m organising an event next Monday 20th February in Parliament for people from Walthamstow to find out more about what it means to have a Co-operative as well as Labour MP.

From campaigning on schools, sportsclubs, hospitals, the future of our railways or credit unions, the Co-operative Movement has a wide range of policies and ideas to contribute to shaping the future of Britain. This event is an opportunity for anyone who has ever wondered about our work within our Parliament to learn more our activities promoting co-operative ideas and values within UK policy making.

It will be an informal and relaxed evening, with light refreshments as well as the opportunity to meet members of our local Co-operative Movement and to hear from special guest speakers. The event will be held on Monday 20th February 2012 in the Jubilee Room (off Westminster Hall) and will start at 7pm.

Please note as this event is in the parliamentary estate you will need to allow 15- 20 minutes to pass through security to enter the venue. Places are limited for this occasion so if you would like to attend please email or call Mark Lewis in the office to confirm your attendance on mark@workingforwalthamstow.org.uk or 020 8521 1223.

If there are other residents of Walthamstow who you think would enjoy participating in this event or you would like to invite to attend to learn more about the Co-operative Movement please do let us know as they would be very welcome. Please note we will need their names and a contact email or phone number for them.

I hope you will join me and many others next Monday to find out more about the Co-operative Movement,

Stella Creasy
Labour and Co-operative MP for Walthamstow

This weekend, the Co-operative Party is launching its vision for local government in Wales at an event at the Welsh Labour Conference. Four council candidates in the coming elections in Wales explain why co-operative ideas are so critical this May.

As Labour Co-operative candidates in the Welsh council elections, we believe in an economy that works for people, not just profit. The current economic situation facing the whole UK is a huge threat to the fabric of our communities, but it also offers an opportunity for us to put co-operation at the heart of everything we do. Local government may be facing spending constraints, but we must continue to press for fairer, more accountable and more equitable local services. Only Labour with the help of the Co-operative Party can deliver the change that Welsh people want to see.

Wales faces a unique set of circumstances that make the opportunity for a co-operative approach starker. A Labour government in the Senedd committed to co-operative approaches; a vibrant co-operative sector worth £1 billion; and of course devolved powers that protect Wales from some of the worst excesses of the Tory-led government in Westminster and allow us to develop co-operative ideas.

The co-operative movement came into existence in hard economic times because ordinary people were able to come together and share their resources for common good. Then, as now, the co-operative movement was profoundly democratic with all members able to contribute equally. We want councillors, Co-operative Party members and Labour Party members to use the ideas in this manifesto in the same spirit as the early co-operators. Not all the policies will be appropriate for all Labour groups or Labour councils, but this manifesto provides ideas and resources which can provide a starting point for developing local co-operatives and services with co-op values. We would like to see these approaches come together into a Welsh version of the ‘Co-operative Council’ – and some of the ideas on this are spelt out below.

Co-operative Councils, co-operative housing and co-op values across society – we believe that this manifesto offers an exciting co-operative alternative for Welsh communities.

In co-operation:

Lis Burnett, Vale of Glamorgan
Dylan Lewis, Ceredigion
Stephen Marshall, Newport
Phil Bale, Cardiff

Download A Co-operative Agenda for Welsh Local Government. The launch will be at the Co-operative Party and Co-operatives and Mutuals Wales Fringe meeting at Welsh Labour Conference, 5.30pm, Saturday 18 February 2012, Room 22, Swalec Stadium. Speakers – Alun Michael MP, Huw Lewis AM, Ashley Simpson, Derek Walker, Karen Wilkie, Alex Bird. Chair – Cllr Cerys Furlong.

There will also be a Labour Welsh Executive paper on Co-operative Councils debated at the conference, and a workshop on co-operative councils at 9.30am on Sunday.

We will be launching our Co-operative Agenda for Welsh Local Government at the Co-operative Party and Co-operatives and Mutuals Wales Fringe meeting, 5.30pm, Saturday 18 February 2012, Room 22, Swalec Stadium.

Speakers – Alun Michael MP, Huw Lewis AM, Ashley Simpson, Derek Walker, Karen Wilkie, Alex Bird. Chair – Cllr Cerys Furlong

There will also be a Labour Welsh Executive paper on Co-operative Councils debated at the conference, and a workshop on co-operative councils at 9.30am on Sunday.

Co-operative Party Youth Wales is holding a social event for all young members to attend on Saturday evening after Welsh Labour Conference. We will start our first social event off at “The Gatekeeper Wetherspoons” on Westgate Street, Cardiff at around 8.00pm – 8.30pm and then take the night forward from there! The pub is directly opposite the main entrance to the Millennium Stadium. For more info email Steve Cushen on coop.youth.wales@hotmail.co.uk.

Parliamentary Officer Joe Fortune outlines the work Co-operative MPs are doing in Parliament to make our economy fairer.

The Co-operative Party Parliamentary Group has always sought to provide the movement a range of activity in Westminster, whether it is promoting co-operative legislation, promoting the ideas of the movement and scrutinising proposals to ensure that the co-operative angle is not lost.

Although the Coalition Government have been short of legislation in the House of Commons, as much of their legislative agenda is being held up by rebellious Lords, they introduced a very important piece of legisaltion on Monday 6th February. This proposal is titled the Financial Services Bill and seeks to reform the financial regulatory system to avoid a repeat of the financial crisis. It brings forward proposals to give the Bank of England control of macro-prudential regulation and oversight of micro-prudential regulation.

This type of legislation may be a once-a-decade type of Bill and provides a range of opportunities for co-operatively minded politicians, not only to ensure that the Government does not produce more deficient legislation, but also promote issues we find important.

The Feeling’s Mutual Campaign that the Co-operative Party has promoted over the last number of years seeks to promote policies which enhance financial inclusion and a new, fairer economy which works in the interest of people rather than bankers. This campaign will help Chris Evans MP promote a Ten Minute Rule Motion later this session titled ‘The Banking Disclosure and Responsibility Bill’. This Bill will seek to press the Government to do more for financial inclusion and education, disclosure and transparency of financial institutions.

Many of the demands of Chris Evans’ Bill relate to measures in the Financial Services Bill. Therefore it is good to see that Labour & Co-operative members of Parliament took the opportunity of this week’s debate on the Financial Services Bill to serve notice on the Government that we will seek to improve their legislation with co-operative values over the course of the process.

Examples of this can be seen through the contributions of Stella Creasy MP, Chris Evans MP and Chris Leslie MP in the debate.

Stella called on the Government: “…to do a lot more to emphasise other consumer protection matters. We must surely grasp the nettle and take this opportunity to do what we can to improve financial education in all our schools up and down the country. We must also make sure that the information available to customers more generally is accessible, intelligible, clear and understandable so that we can try to do something about the asymmetry of information that hon. Members have discussed.

“I know that many Members agree that things could be done, so let us give the FCA the power to intervene to make sure that there is competition and to use price as an indicator of competition. Let us give the FCA the real power it needs finally to address this country’s legal loan sharking.”

Chris Evans MP pressed the Government, stating:

“I believe that through the FCA we have a chance to bring about financial inclusion audits and to map where each financial transaction takes place. It would be very dangerous to say that a financial crisis will never happen again, but I hope that we can put things in place to ensure that, if it does happen again, it might not be as bad as it was this time.

“It is highly important that we bring about not only statutory financial education in schools but a duty on banks to provide some sort of financial education.”

Chris Leslie MP, who wound up the debate for the Shadow Treasury Team and suggested that there may be opposition amendments to force the industry to institute an important fiduciary duty on regulated firms stating: “a fiduciary duty of care could be placed on providers of financial services, and we think that there are compelling arguments in favour of such a change.”

Chris Leslie and others will ensure these points will ensure that Labour and Labour & Co-operative politicians will not lose sight of these important issues as the Bill enters its ‘line by line, clause by clause’ scrutiny.

Watch this space.

David Cameron spoke in London today about ‘responsible capitalism’, including the announcement of a new co-operatives act to consolidate existing laws.

Co-operative Party activists and MPs were responsible for championing and securing much of the legislation that is to be consolidated – it was a shame that Mr Cameron did not acknowledge the vital role the Party has played in modernising the laws governing co-operatives.

Acts drafted and assisted through Parliament by the Co-operative Party include:

- Industrial and Provident Societies Act 2002
- Co-operatives and Community Benefit Societies Act 2003
- Climate Change and Sustainable Energy Act 2006
- Co-operative and Community Benefit Societies and Credit Unions Act 2010

Whilst there were no new announcements of policies on co-operatives in the speech, David Cameron did signal that he supports co-operative businesses as part of a range of business models in a free market.
 
Responding to the announcement, Co-operative Party chair Gareth Thomas said:
 
“Over the last decade the Co-operative Party secured the most comprehensive package of legislation ever for co-operatives and mutuals.  Putting that into one Act is a step in the right direction but the government should be more ambitious and include new measures to help co-operatives.
 
“2012 is the United Nations International Year of Co-operatives.  The government should not miss that opportunity by limiting the Act to a consolidation of existing legislation.  They should seize the moment and include new measures  such as the Co-operative Party’s plan to enshrine co-operative housing in legislation.
 
“That plan, which is in a Bill put forward by Labour and Co-operative MP Jonathan Reynolds, would establish for the first time co-operative housing tenure in law and update the current feudal arrangements.
 
“Co-operation and mutuality is an idea whose time has come back.  In the year when the whole world celebrates the co-operative model we should look at every possible way to put co-operatives on a level playing field with other forms of business.”

To coincide with the launch, new research was published today showing that membership of co-operatives is three times higher than the number of individual shareholders across the world, according to a report. Around one billion people belong to a co-operative enterprise, compared with 328 million individual shareholders, research for The Co-operative Group showed. Just under 15% of the UK population owns shares, compared with 21% who own or are members of a co-operative, it was revealed in the study.

The BBC are helping to celebrate and promote the Year as well. Tonight, tune in to hear Russell Gill, Head of Membership at the Co-op Group as part of the Radio 4 programme “All together Now”. The presenter Peter Day visits Spain to uncover the opportunities that co-operatives bring to solving the problems of the global economy. Listen out on Thursday 12th January at 8:30pm or Sunday 15 Jan at 9:30pm.

The Co-operative Party and our politicians locally and nationally have been taking part in events and activities to raise awareness of the UN Year.

Gareth Thomas MP, Labour’s Shadow Minister for Civil Society and Chair of the Co-operative Party, said:

“This is a huge opportunity to spread the co-op message to people across the world about new and innovative ways of working in communities to benefit the collective good.”

Check out the International Labour Organisation’s video for the International Year: