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Affordable Housing Commission calls for £1.3bn fund to convert private homes to social housing
Housing leaders are calling on the government to establish a £1.3bn ‘national housing conversion fund’ to enable social landlords to buy up private housing amid warnings of a housing market downturn.
![“[The fund] would bring empty properties back to life, stimulate activity on stalled sites and assist landlords exiting the market,” said Lord Best (picture: Guzelian)](https://omghcontent.affino.com/AcuCustom/Sitename/DAM/123/LORD_RICHARD_BEST_2_HOUSING_2019_GUZELIAN_MIN__thumb.jpg "“[The fund] would bring empty properties back to life, stimulate activity on stalled sites and assist landlords exiting the market,” said Lord Best (picture: Guzelian)")
A report released today by the Affordable Housing Commission said that such a fund could deliver 42,500 new affordable homes and 9,300 new jobs.
It argued the fund could mitigate an anticipated downturn in the housing market and would be a cost-effective way to help tenants and increase the provision of social housing.
Similar schemes have been introduced during past recessions, for example in the early 1990s through the Conservative government’s Housing Market Package, the report argued.
It also said that allowing social landlords to buy up distressed private properties in low-value areas could improve housing conditions and contribute to the government’s agendas to level up the country and reduce carbon emissions.
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The commission said funding should be made contingent on landlords investing in a property to raise standards and that the fund could also be used to acquire properties on stalled sites to kick-start development.
While the fund will require almost £1.3bn in grant, it is calculated that with housing welfare savings and wider benefits, the net cost to government would be £623m.
Additionally, it has been calculated that the net economic benefits of increased housing, economic activity and distributional benefits would total £1.37bn over the next 30 years.
Lord Best, chair of the Affordable Housing Commission, said: “We believe the chancellor has a great opportunity to stimulate the economy, boost jobs and tackle the housing crisis by backing plans for a national housing conversion fund.
“This would bring empty and run-down properties back to life, stimulate activity on stalled sites and assist landlords exiting the market, while addressing the acute shortage of homes at truly affordable rents.”
