ao link
Twitter
Facebook
Linked In
Twitter
Facebook
Linked In

You are viewing 1 of your 1 free articles

Homeownership plans don’t add up to a ‘one nation’ housing policy

The government has been clear about its plans to increase homeownership – but its clarity exposes the woolly thinking when it comes to social rent and a housing policy that works for all, writes Martin Hilditch

Linked InTwitterFacebookeCard
A stable home feels out of reach for many (photo: Getty)
A stable home feels out of reach for many (photo: Getty)
Sharelines

The government needs to rethink its housing policy to provide a solution that works for all, writes @martinhilditch #ukhousing

“The government must swerve the temptation to let its shiny new First Homes product swallow up everything else,” says @martinhilditch #ukhousing

Last week the government launched a consultation on a future First Homes programme with a promise to increase homeownership because “for many this simply feels out of reach”.

This last point is true, but the conversation (at least in terms of policymaking) continues to overlook another simple truth: for too many people a stable home of any description simply feels out of reach.

This last point is undoubtedly true, and the First Homes programme has many laudable aims. But the national conversation (at least in terms of policy-making) continues to overlook another simple truth: for too many people a stable home of any description simply feels out of reach.

As last year’s Rethinking Allocations report from the Chartered Institute of Housing (CIH) found, some people are currently shut out of the mainstream housing system.

We don’t need to look very far for the reason why. This week, housebuilding figures revealed that just 3,583 of the 90,323 homes funded through the Shared Ownership and Affordable Homes Programme (SOAHP) since 2016 have been for social rent – that is just 4%. If you are desperately searching for stable, affordable housing, then SOAHP in its current form is the moustache-twirling villain who is kicking you out onto the street.


READ MORE

A glimpse into the heart of housing’s twilight zoneA glimpse into the heart of housing’s twilight zone
Call for government to rebalance Affordable Homes Programme as social rent numbers revealedCall for government to rebalance Affordable Homes Programme as social rent numbers revealed
Four things we learned from Homes England’s Affordable Homes Programme dataFour things we learned from Homes England’s Affordable Homes Programme data
What associations must consider when switching from shared ownership to rentWhat associations must consider when switching from shared ownership to rent

With the First Homes programme, we are now in a weird situation where government has identified that the market price is unaffordable for many people and in order to support people who are “unable to afford a property on the open market” a discount of 30% at a “minimum level” might be appropriate. Even this “may not, however, be sufficient to ensure First Homes are affordable to local people in areas where affordability is particularly challenging”.

“For too many people a stable home of any description simply feels out of reach”

When it comes to rented housing, however, the picture is quite different.

Where’s the discussion among policymakers about how to make rented products genuinely affordable for people most in need? The emphasis on the preferred ‘affordable rent’ product is on charging rents of “up to 80% of market rent levels” rather than the minimum levels of discount necessary to make the product work for “local people”. The language betrays the level of thought – and importance – attached to making the different products work for the target audience.

As a result, we are in a situation where affordability barriers are stopping people accessing what should be the most affordable products. As the CIH’s report found, there’s a “perverse situation where the reasons why people may need access to social homes the most can often become the barriers to accessing them”. That report’s first recommendation for government was that it should fund a 10-year grant-funding programme for social housebuilding.

The worry is that the current disastrous situation could get worse, with the First Homes programme potentially gobbling up 80% of Section 106 contributions. As a reminder, almost 50% of affordable housing – and more than 50% of social rent – comes via Section 106.

Moving forward, the government must swerve the temptation to let its shiny new product swallow up everything else. And if Boris Johnson is to deliver on the promise he made of creating a Conservative Party that is “literally for everyone”, that has to start with a housing policy that addresses the needs of the whole population.

Martin Hilditch, editor, Inside Housing

Inside Housing Development Summit 2020

Inside Housing Development Summit 2020

Inside Housing is pleased to join forces with Homes England and the LGA to introduce the Inside Housing Development Summit.

Taking place on 27-28 April 2020, the summit will gather together local authorities, housing associations, developers, fund managers and advisors for a Chatham House style event focussed on making new connections and exploring new delivery models.

The summit will take place over 28 hours, starting with an afternoon plenary on 27 April, an exclusive development site study tour to Northstowe, England's largest new town since Milton Keynes, followed by a business dinner.

The second day will provide opportunities to network with a range of senior Homes England and LGA staff including Nick Walkley, chief executive of Homes England and Mark Lloyd, chief executive of LGA.

You’ll also meet with leaders from across the development ecosystem and take part in group discussions to help you connect and explore new opportunities. All accommodation and meals will be provided within the fee.

Places for each stakeholder group are limited to ensure a balanced mix of participants and to make sure you leave with the relationships and leads you need.

Click here to book your place or for more information

 

Linked InTwitterFacebookeCard
Add New Comment
You must be logged in to comment.