Housing 2012: sector divided over public grant and private investment

A growing ideological split in the social housing sector was exposed on Tuesday as delegates at the Chartered Institute of Housing conference in Manchester debate how the housing sector could – and should – be funded in future. Confirming that his department was already planning for the next spending review, Communities and Local Government director general of neighbourhoods Peter Schofield hinted that public funding for housing was likely to remain scarce. He said that the government would act as an "enabler" rather than a funder of the housing sector, "providing the conditions to make it easier for others to invest". But he added: "If we can't promise more government spending, there are things that government can do." His suggestions, including freeing up private sector land and working with pension funds and other private investors, also included a call for housing professionals to share other ideas with the department. A panel of housing leaders chosen to debate with Schofield highlighted a schism set to widen as the sector fights to define its role and purpose in a new and challenging economic environment. Alison Thain, chief executive of Fabrick Housing Group , said housing should keep fighting for its share of government spending. "For a moment I thought we didn't have a housing crisis. How long have we talked about freeing up public sector land? I'm sick to the teeth of hearing about private sector investment," she said. "Sub-market housing does need some kind of subsidy – let's not be apologetic about that." Her comments came after shadow housing minister Jack Dromey said a future Labour government would remain committed to public subsidy for the social housing sector. Mervyn Jones, chief executive of Yorkshire Housing , agreed that housing needed a better investment at the next spending review. "We'll look back on the last decade as a golden period of investment in social infrastructure but housing missed out on a lot of that. We have to argue our public spending case." But Yolande Barnes, director of residential research at Savills, said it was time for the housing sector to think differently about its work. She pointed out that the west had become used to blaming a "global debt crisis" for its problems, but in south-east Asia the downturn is known as the "north Atlantic debt crisis". "There are sources of money and what they are looking for is an income. It requires a shift in our industry; we have to start to see value in our income-producing assets," Barnes said. Mick Kent, chief executive of Bromford Housing Group , told housing professionals that it was up to them to help prove to the government "that we're part of the solution, not part of the problem". "As chief executives of housing associations we have to look at ourselves," he said. This content is brought to you by Guardian Professional. Join the housing network for more comment, analysis and the latest conference news from #housing2012