CIH assesses role of intermediate rent
A paper assessing the role housing associations could play in offering homes for intermediate rent has been published by the Chartered Institute of Housing.
The document, Future directions in intermediate renting, sets out why more homes for intermediate rent are likely to be needed, and how the affordable housing sector could play a greater role.
Intermediate products are aimed at people who don’t quality for social housing but struggle to afford market rents or homeownership. In recent years they have tended to be based around shared ownership, but economic pressure has led to questions on the sustainability of these products.
The CIH paper, which is published with housing association L&Q, looks at the potential benefits of a stronger intermediate rental sector, and how this could work with other types of housing.
The discussion paper is part of a wider piece of work looking at intermediate housing, and will lead to a final policy paper in July 2010.
Abigail Davies, head of policy at the CIH, said: ‘CIH has long argued for a more fluid and dynamic affordable rented sector; where renting is a tenure of choice, with more customer focus and flexibility in the tenancies available, and better links to housing and financial advice which support achievement of tenants’ aspirations over the longer term.
‘We believe a strategic new approach to intermediate rental may offer a way to move towards such a system.’
Case study: Down to you
L&Q’s intermediate rent product, Down to you, is aimed at households earning between £12,000 and £25,000 a year. Rents are set at 65 per cent of market level, for five years. After that, residents are expected to use the money they have saved on rent to buy a minimum 25 per cent share in the property.
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Readers' comments (2)
Peter | 08/04/2010 3:50 pm
What if they decide not to buy but use the savings to buy on the open market?
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RonH | 09/04/2010 11:45 pm
... or if they cannot afford to buy? especially on £12,000?
and a rent of 65% of market rate is cold comfort when in London rents now average £1,685 per month ( 65% = rent of £1,095 per month). The figures just do not add up.
This is just another desperate attempt of avoiding the only realistic response to the shortage of places to live, at least in London; a significant investment in social rented housing, which if you look at the history of housing in this and most other european countries is the only way the need for affordable homes has ever been met.
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