You are viewing 1 of your 1 free articles
From the archive – Housing Act won’t help PRS, sector warns government
Inside Housing looks back at what was happening in the sector this week 10, 20 and 30 years ago
30 years ago
Experts warned that measures in the recently introduced Housing Act 1988 were unlikely to achieve their aim of revitalising the private rented sector (PRS).
The act, which came into effect 30 years ago last week, ended the practice of rent control in the PRS and meant all new private lettings would be for assured tenancies at market rent. The government hoped the new measures would encourage landlords to invest in the PRS. However, the Institute of Housing predicted that the changes would lead to only a small increase in supply of rental accommodation at the top end of the market.
Sue Robertshaw, deputy director at the institute, said: “The measures will do little to create more affordable rented homes for people who currently rely on council housing or who cannot afford to buy.”
20 years ago
A leading figure at the Housing Corporation – the government’s funding vehicle that was one of the antecedents of Homes England – admitted that its future role as an investor in the sector would be limited.
Deputy chief executive Simon Dow told delegates at the National Housing Federation’s (NHF) chief executive conference that the quango would “not be a key investment player in the future”.
Mr Dow, now interim chair of the Regulator of Social Housing, told the conference: “In future, we will be part of the scenery and not a major player.”
Jim Coulter, chief executive of the NHF, said the corporation’s switch in priority “from volume to quality of investment” represented “the biggest change for housing associations since 1988”.
The speech came ahead of a consultation on changes to the corporation’s funding programme, due to go out to associations in March. Mr Dow denied that the corporation would become “funding of last resort” but he did say that associations would have to demonstrate that no other
source of cash was available.
Picture: Getty
10 years ago
In a move town halls hoped would spark a modern wave of council housebuilding, local authorities were told they could keep the rental income from homes they built, bought or brought back into use. Housing minister Margaret Beckett also told councils they could retain receipts from Right to Buy sales.
The move marked the end of the previous system, under which rental income from new build and the bulk of Right to Buy receipts were ‘pooled’ and redistributed to councils.
The Labour government expected the changes to lead to “thousands” of council homes being built. The Local Government Association predicted that the changes would result in “many more” councils building homes, but said councils should also be able to keep rental income from existing stock.