Thursday, 08 December 2016

Mayor urged to ditch shared ownership

London Assembly Green Party member Jenny Jones is urging mayor Boris Johnson to work with communities to make homes more affordable.

In a report released today Ms Jones claims the shared ownership model is doing little to stop the cost of home ownership rising raster than average incomes. 

She suggests switching to co-operative home ownership models, such as community land trusts, where the home owner does not buy the land the property is built on.

The co-operative would lease the land to the home owners. Because land generally increases in value faster than the housing it contains, this would reduce the cost of the home for the next buyer.

The research, Bringing affordable ownership home, says: ‘The key to delivering co-operative models like community land trusts lies in the name.

‘The mayor [Boris Johnson] needs to work with and support local communities to bring proposals forward, helping them jump through the hoops created by the local planning system and the Homes and Communities Agency.

This follows a report Ms Jones released in January 2010, called Coming home to roost, in which she suggested both Mr Johnson and previous mayor Ken Livingstone had failed to make housing affordable.

‘The mayor is trying to provide a pool of affordable homes, but once sold his publicly subsidised barely-affordable homes rise in value much faster than incomes, so they are resold as unaffordable homes,’ she said.

‘It is like filling a bath with the plug out – the subsidy is going down the drain.

‘Co-operatives could create a pool of homes that offer low cost home ownership for generations to come.’

She pointed out the London mayor promised to promote co-operative models in his manifesto.

Readers' comments (4)

Comments are only open to subscribers of Inside Housing

Already a subscriber?

If you’re already a subscriber to Inside Housing, your subscription may not be linked to your online account. You can link your subscription from within the My Account section of the website and clicking on Link My Account.

Not yet a subscriber?

If you don't yet subscribe to Inside Housing, please visit our subscription page to view our various subscription packages.

Have your say

You must sign in to make a comment

sign in register

Newsletter Sign-up

Related

Articles

  • Associations push for shared ownership flexibility

    7 July 2016

    Housing associations are pressuring government to guarantee an “exit strategy” in its new shared ownership programme, amid housing market uncertainty following the Brexit vote.

  • Grant rates double to push shared ownership

    22 April 2016

    Housing figures have welcomed a major increase in grant levels in a new funding programme which ministers hope will take shared ownership “to the next level”.

  • GLA shared ownership fund slow to gain interest

    16 December 2015

    The Greater London Authority’s pioneering push to get institutional investors into shared ownership initially struggled to attract interest before launching last month.

  • GLA launches shared ownership fund

    11 December 2015

    Institutional investors will fund 1,000 new shared ownership units in London, under a new funding model launched by City Hall.

  • Shared ownership changes 'could boost supply'

    8 December 2015

    Relaxing rules on shared ownership could encourage social landlords to step up their development of the tenure in the knowledge that there will be greater demand.

IH Subscription