POLICY
publicly supported it, although with qualifications that, roughly translated, said, ‘provided they actually do it, and do it soon’. However, the sweeties were reserved for just two sections of the housing market: improving mortgage availability – but for new build only – and encouraging investment in the Private Rented Sector.
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“We inherited a housing market where:
buyers can’t buy – an average age of an unassisted first time buyer continuing to rise and families struggling to ‘trade up’;
lenders are not lending enough – with high deposits excluding young people and families from home ownership;
builders are not building – without consumers ready to buy and without enough land for development or access to finance;
investors are not investing – without the right framework or incentives in place;
affordable housing can do more – to deliver new homes and support the social mobility and aspirations of tenants and communities;
tenants are struggling – as pressures increase in the private rented sector.”
Eric PicklEs sEcrEtary of statE for Housing &
local govErnmEnt
industry rEaction RICS spokesperson, Michael Newey, said that RICS welcomed the Government’s Housing Strategy, “Given its central role in driving economic growth, it is right that housing is now at the top of the political agenda. “Better access to mortgage finance
is essential to help more achieve their aspiration of home ownership, particularly first-time buyers. The New Build Indemnity Scheme is to be welcomed but care must be taken to ensure it does not distort the market or lenders affordability calculations. The focus on new build will not free up chains and may reduce demand for second hand property, putting those who wish to move but have little equity at a
The focus on new build will not free up chains and may reduce demand for second
hand property.” micHaEl nEwEy rics
disadvantage… limiting funding to niche areas of the market in this way does not solve the wider need for adequate levels of funding in all parts of the market.” And he also welcomed the
attention on the Private Rented Sector (PRS). “Whilst a renewed focus bringing investment into the PRS is encouraging, an opportunity has been missed to begin delivering real consumer protection and professionalism right across this rapidly growing sector.” The British Property Federation (BPF) was very pleased that Mr
We would urge the Government to press on with this quickly. The economy is in dire
need of support.” ian flEtcHErbPf
Cameron seems to have taken note of its campaign for the creation of a large-scale, professionally run PRS, where major institutions such as pension funds build homes to let. Ian Fletcher, Director of Policy at
the British Property Federation, said, “The housing strategy is a welcome first step towards a coherent and long-term vision for house building in this country and it is good to see the government recognise the importance of encouraging investment in to the PRS, something that will be vital if we are going to
The Government commitment to conduct a review of the PRS is a step in the
right direction.” ian PottEr arla
see the necessary number of homes built to meet demand. “We would urge the Government
to press on with this quickly. The strategy is welcome but it comes not a moment too soon with house building at historical lows and the general economy in dire need of support.” Ian Potter, Operations Manager
ARLA, said, “We are pleased that the Government has recognised the PRS in its Housing Strategy, and the important role it plays in today’s struggling housing market. Equally, measures aimed at First Time Buyers and affordable housing tenants are welcome. While we would like to have seen some measures aimed directly at the PRS, the Government’s commitment to conduct a review of investment into the PRS in the future is a step in the right direction and we look forward to the findings.”
nEw build – “a droP in tHE ocEan” Jon Neale, Head of Residential Research at Jones Lang LaSalle said, “At present, many potential first- time buyers are effectively locked out of the housing market, with the products that are available to those with more limited means, charging prohibitively high interest rates. The mortgage indemnity proposals will help up to 100,000 people to buy a new home with just a five per cent deposit – although it will not help those who do not wish to buy a new home or solve the lack of liquidity in the resale market.” “However, over the past few years
there have been, on average, around 200,000 first-time buyers per annum, compared to an average of over 450,000 before the financial crisis. While this initiative is substantial and innovative, it cannot in itself restore first-time buyer numbers. Regardless of mortgage concerns, affordability and the undersupply of new homes remain the major barriers. “Over the past few years, there
have been on average fewer than 100,000 starts on new homes, compared to an average of 175,000 during the five years leading up to 2007. Britain faces a huge shortfall, with new households likely to form
PROPERTYdrum JANUARY 2012 15
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