Report calls for changes to existing tenancies
Moving all social rents to 55 per cent of market rent could produce £20 billion of extra borrowing for new homes, according to a report published today.
Housing association London & Quadrant and consultancy Pricewaterhouse Cooper has today published Where Next? Housing After 2015.
The report looks at ways of funding affordable housing after the new affordable homes programme funding round comes to an end in 2015.
It calls for a new flexible tenure, which would ‘straddle the social, intermediate and private markets and be open to everyone.’
It says moving existing social rents to an average of 35 per cent of net income, or 55 per cent of market rent (up from 45 per cent currently), could produce extra borrowing capacity of £20 billion.
Moving half of empty housing association social homes to market rent could generate £5 billion, while if 1 per cent of tenants who could afford it took up an offer of shared ownership, £2 billion would be produced.
The report suggests money raised through new rent flexibilities can be put into a fund which would be held on a housing associations’ balance sheets and ring-fenced for new housing at below-market rents.
Read Inside Housing’s analysis piece on proposals for a second round of affordable housing here.