Barwell hints at funding for sub-market rent

The housing minister indicated the government would shift away from its current plan, which is almost entirely focused on shared ownership, to a more “flexible” approach including homes for sub-market rent.

Speaking at a fringe session of the Conservative Party conference in Birmingham yesterday, Mr Barwell said: “At the moment, the budget that I inherited is very heavily concentrated on shared ownership, with a bit of money for rent to buy and supported housing but no new funding for affordable rent.

“I’m actually interested in having a much more innovative approach, where we say to the people bidding for those funds that what we want is to maximise number of homes and mixed tenure. I don’t want to go back to a world of monoculture but I want a flexible approach.

“My starting point is I reject the false choices we have had in the past, homes to own or homes to rent. I want more homes for sale. I need more shared ownership. I need private rent and I need more submarket homes for rent.”

He said last month at the National Housing Federation’s annual conference that he was willing to look at a more flexible approach to the Shared Ownership and Affordable Homes Programme 2016/21.

At present, the programme includes 135,000 homes for shared ownership, 10,000 for rent to buy, and 8,000 for supported housing.

Housing associations have been strongly lobbying for additional flexibility in the SOAHP, warning that their bids are likely to be lower if ministers do not change their approach.

Earier today, chancellor Philip Hammond said: “Making housing more affordable will be a vital part of building a country that works for everyone.”