BUDGET REPORT
Good: when unemployment falls but the affordability of owner occupation remains at 2010 levels Bad: unemployment remains at current levels, owner occupation becomes more affordable Ugly: unemployment rises and house prices fall sharply and remain at a low level Ippr believe that between 3.3 and 4.5 million additional households will be formed by 2025, suggesting a margin for error of 36 per cent, and that demand will be focused on the social sector with total demand exceeding supply by 750,000 housing units by 2025. This contrasts with the government decision to cut the housing budget by 50 per cent and build only 150,000 new affordable homes over the next four years. Ippr also assume that the 1.75 million on local authority waiting lists are in housing need, whereas many only seek subsidised housing with lifetime tenure at the taxpayers’ expense. Few would disagree that the elderly, the
sick and severely disabled should be given access to low cost homes. However, many
Perhaps the only thing missing is a new form of tenure – long-term full repairing leases that can be sold on.’
question the right to lifetime tenure. There is little justice in forcing everyone to contribute to social housing occupied by those better off than themselves.
15582 LS-Property Drum-130X180 Ad-HiRez.pdf 1 15/04/2011
Changes are needed I agree with Deloittes, who described the Chancellor’s housing reforms, particularly those proposed for REITS, as potentially leading to a real step change for the property industry. The institutions certainly have the funds to provide sufficient homes, and an increasing interest in ownership of residential property where long term investment matches their long term liabilities to pay pensions and annuities. Perhaps the only thing missing is a new form of tenure – longterm full repairing
15:25
leases similar to those that apply to the commercial sector – that could provide longterm homes. Leases might be sold if occupants wished to relocate. Well funded purchasers might buy a
lease outright, paying little in rent, while those less well off would pay a full rent but only a small lease purchase price. The value of leases would move with the market and reflect improvement to the property. Grant Shapps, the Housing Minister, is an innovator devoted to reducing the legal complications that bedevil housing purchase and letting transactions: is his office the source of the sudden interest in this new idea?
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30 MAY 2011 PROPERTYdrum
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