Here’s how developers are getting out of building affordable homes

Yeah, you will never live here. Image: Getty.

Our housing crisis has been thrust into the spotlight in the worst way possible with the Grenfell Tower disaster. Hundreds have lost loved ones and many are without a home. While Shelter has been calling for those affected to be placed in good quality accommodation nearby, and hopes officials make good on their promise to do so, we know many local authorities simply don't have enough affordable homes.

The main reason for this desperate crisis? A generations-long failure of our housebuilding system to build enough homes that people on ordinary incomes can afford.

Over many years, house prices have continued to soar, while wages have stagnated. The average house price is now 7.6 times the average salary – it was about half that 20 years ago. 

Meanwhile, renters right across the country are having to shell out massive amounts of money every month to cover their rent, all for unstable, short-term contracts. And at the sharp end, homelessness is on the rise, with a shocking 255,000 people finding themselves without a home at the last count.

Today we rely on private housebuilders to build most of our homes. But as profit-driven organisations they are, perhaps understandably, not very good at building affordable homes.

A favoured, and perfectly legitimate way of building fewer affordable homes is through something called a “viability assessment”. When a housing developer gets planning permission they are normally required by the council to make a number of the homes they build officially "affordable". This number varies across the country but is usually between 30 to 50 per cent and developers will be aware of the requirement before they begin drawing up plans.

But the less affordable housing a developer builds, the more profit they could make – so the developer deploys the viability assessment. This allows them to go back to the council and say that the amount of affordable housing they originally agreed is no longer possible.


They’ll often blame changes in their costs or lower than anticipated house prices (as we’ve seen recently with the Battersea Power Station development), meaning they won’t make sufficient profits to build the number of affordable homes originally planned. Their case is strengthened by the fact the law was changed in 2012 to state that the developer must make “competitive returns” (in practice, 20 per cent profit) on the development.

The massive problem here is that we can’t scrutinise these really important decisions because – guess what? – the viability assessment is private. So affordable homes are being denied to people who really need them right across the country in this way, but local communities, journalists, campaigners and charities like Shelter are not being allowed to question it. And of course, it’s those people desperate for an affordable place to live who lose out.

It can be argued that developers are simply following the instinct of most private companies in being competitive and taking the opportunity to make more money. The real issue is that they are allowed to do it so easily in the first place, and keep it a secret.

The viability assessment should only be used when circumstances have made the council’s requirements literally impossible. And in such a case, it should be published so the public can scrutinise it. After all, in such an eventuality – what does anyone have to hide, right?

This issue is among many being discussed in the recent housing special from Channel 4’s Dispatches which looks at the challenges we face in ending the housing crisis.

We need to get tougher and plug this leak of affordable homes, but this is just one symptom of a housing system that is letting the whole nation down.

There are ways to solve this, based around getting land at a cheaper price. Until the government takes bold action to commit to a whole new way of building homes like this, it will be ordinary families who continue to carry the burden of our broken system.

Steve Akehurst is head of public affairs and campaigns at Shelter. Channel 4 Dispatches was broadcast on 10 July, at 8pm. This article previously appeared on our sister site, the Staggers.

 
 
 
 

How do North Koreans get to work? A guide to transport in the DPRK

Buhung station, on the Pyongyang Metro. Image: Jodie Hill.

Like so much else in North Korea, the country’s transport can be divided into categories: Pyongyang and not Pyongyang.

In the capital, centrally-run transportation is, compared to other extremely poor countries, efficient, cheap and well maintained. Outside Pyongyang, by contrast, the state has withered away – albeit not quite as Marx imagined it would. The near total collapse of state run transport infrastructure has left room for a wide range of enterprising North Koreans to make their living in the transport sector – provided, of course, a chunk of those proceeds makes its way back to the party.

So how do North Koreans get around Pyongyang?  

Here’s a homemade map of the city’s transport section:

A homemade map of the Pyongyang transport sector. Image: Michael Hill.

Some notes on all this. The names for Subway stations are translations of the Korean names, but bear no relation to their location. I filled in the (unnamed) trolley bus and tram stop names myself, with reference local landmarks; in fact, those systems both stop way more than my map implies.

What’s more, the Gwangmyeong/Bright Future station is closed, and has been for years – out of respect for Kim Jeong Il and Kim Il Sung who are in a nearby mausoleum, which used to be Kim Il Sung’s Pyongyang pad. The tramline to Gwangmyeong/Bright Future is also not really part of the public transport network, but is just for visitors to the mausoleum.

Getting about

A subway ticket costs just 5 North Korean Won (9,500 won to the dollar at black market rates). If you need to transfer you will have to buy another ticket, there are no travelcards or season tickets. You can check the best way to get where you are going at most stations (possibly all) contain interactive maps.

Pyongyang subway interactive map. Image: Jodie Hill.

Just press the name of the station you wish to travel to from the list along the bottom, and the route from your current station to your destination lights up. This may or may not be overkill for a network with just two lines and 16 stations.

Incidentally, the logo has the word 지 (ji) which is the first syllable of 지하 (jiha) which means underground. The title just means “Information board”, and the question is, ‘Where are you going?’

Some stations are 360ft (110m) deep, double the depth of the deepest station (Hampstead) on the London Underground.

The escalators at Buhung/Revival station escalator. Image: Jodie Hill.

While this bomb shelter might be useful one day, for now it just means Pyongyangites add ten minutes to their planned journey time – which encourages many people to take the tram or trolley bus instead. When you finally get down to the platform you won’t have long to wait – at most 5 minutes during peak times, 10 minutes off peak.

The North Korean government never misses a chance to propagandise: every station has a theme. For example the station name Gaeson means “Triumphant Return”; it’s situated near where Kim Il-Sung gave his first speech as ruler. Inside the murals depict crowds attentively listening to him. The style is not dissimilar to the grandeur of subways in the former Soviet Union, but with much less emphasis on the workers and modernist art and a lot more on the rulers.

The trains themselves were made in West Germany in the 1950s and 60s. There are allegedly some new trains – but they look suspiciously like their older counterparts given a lick of paint and an electronic information board. The old East German stock has been moved onto the national rail network. While these days powercuts are much rarer than in the 1990s (when, for long periods of the day, the subway didn’t operate at all), a torch and something to read might be advised just in case you get stuck.

The central figure is Kim Il-Sung. Image: Jodie Hill.

The ‘showcase’ station is Buhung (“Revival”):

Images: Jodie Hill.

The others are much the same only without the chandeliers and with much dimmer lights.

Above ground

While electricity is hardly plentiful in North Korea, compared to oil it is pretty abundant. Therefore, buses have gradually been phased out: now trolley buses and trams then form the backbone of the transit network in Pyongyang. As regular as the subway, but with a bigger network and not requiring a long escalator ride – or walk, as the escalators often break down – this is the most popular way to travel around Pyongyang.

The ticket price is again just 5 won (about 0.4p). The trolley bus vehicles were mostly manufactured domestically, while the trams are second hand from communist era Prague. Power cuts are much more frequent on the trolley buses and trams than on the subway: passengers on an affected service are expected to push.

The rail network is rarely used for commuting. Even for those way out in the plush satellite town of Ryeongsong (at the far north of the map, and home of Kim Jong-Un and many other top party cadres), those not high enough ranked for a car take the trolleybus rather than the train to commute to work.

Venturing out of the capital, the official transport network shows signs of near collapse. As far as I am aware, the only other city with a tram network is Chongjin, but it’s hardly extensive – a one line system, eight miles long. It suffers from much more regular power cuts than its Pyongyang counterpart, and relies on hand me down trains from the capital. Many cities have a trolley bus service on paper – but most have no service at all or, at best, a skeleton peak hours service only.

The national rail network is worse. Before you can even get a ticket you must apply for permission – a process that can take days – though nowadays this can be circumvented with a bribe. Tickets are cheap, usually just a few hundred won (a few pence), but with frequent power cuts, journeys take even longer than the 12mph average speed suggests they will. While Kim Jong-Un’s travel habits are unknown, both his father and grandfather liked to travel by private train, and this would lead delays of 24 hours for people travelling in the same area. Freight takes priority over passenger rail, and virtually the entire network is single track and with no sophisticated signalling equipment, meaning trains often have to wait for a long time to let others pass.

A map of the network. Image: Voland77/Wikimedia Commons.

As a result of these problems lot of passenger traffic has moved onto the roads. Enterprising Koreans who have obtained licenses, as well as state operated enterprises (particularly people associated with the police), have bought second hand buses from China and now use them for inter-city transport.

Reports vary about whether travel permits are required for bus travel, and about how hard they are to obtain. Prices fluctuate due to changes in the oil price and vary wildly by region. A journey from Nampo to Pyongyang (about 30 miles) costs $5. A journey of similar length between two cities in the north east costs around $15, while in the north west just $2.

Journeys are not comfortable. North Korean roads are often unpaved, always potholed, and the buses were not in great condition even when they left China. Nevertheless they link the emerging market economy together.  

North Korea road map:

A map of the network. Blue routes are all paved, others mostly unpaved or paved a very long time ago. Image: Voland77/Wikimedia Commons.

For shorter journeys, taxis are now an option in most medium sized cities and even in some rural areas. There are at least four taxi companies operating these days in Pyongyang.

North Korean won won’t get you very far though: taxi drivers want dollars (two of them), to take you anywhere plus another 50 cents for every kilometer you travel, about three times the cost as in North East China. The only network outside Pyongyang I know in detail is one run by a state-owned enterprise in Chongjin, which recently imported dozens of almost new taxis from China. Payment is accepted in North Korean won, Chinese RMB and US dollars; a 10 minute journey costs 1 dollar.

Taxis are beyond the means of most North Koreans, though. The backbone of North Korea’s transport infrastructure is formed by bikes.


Bicycles were illegal in Pyongyang until 1992, and this ban was strictly enforced – but since it was lifted, bike use has really taken off. In smaller towns they often serve as a status symbol as much as transport, much as cars do for many in the west. The wealthiest now ride electric assisted bikes imported from China, though the Ford of North Korea is the Pyongjin bike company, which has cornered 70% of the market according to the leading North Korea scholar Andrei Lankov.

It is still technically illegal for a woman to ride a bike, but this ban is not strictly enforced. (I know of one woman who used to ride her technically illegal bike to her technically illegal small business, a bicycle repair shop.) Legally, every bike needs a license plate, and each rider needs take a test and get a license – but this too is mostly unenforced.

It is illegal to ride on North Korea’s mostly empty roads. This ban is not enforced in most cities, but is in Pyongyang, where the government has started creating cycle paths on the pavements as well as a bike hire scheme. If you can’t afford a bike yourself, a ‘bicycle carrier’ will give you a lift for about five US cents per kilometre – although, like a land based Ryanair, you have to pay more for bags. Both customers and workers in this sector tend to be very poor.

North Korea’s transport mirrors the North Korean economy. Pyongyang just about manages to present itself as a communist city. Outside the capital, though, secret policeman, state-operated enterprises and sole traders make a living – and sometimes a fortune – keeping the country moving among the remains of a communist economy which never delivered.

With thanks to Michael Spavor of Paektu Cultural Exchange and Rowan Beard of Young Pioneer Tours for helpful conversations.  

Michael Hill wants you to be his third twitter follower so you can see more versions of the Pyongyang transport map.