OWNERSHIP
THE DREAM OF HOME
we’re at a crossroads The provision of low-cost home-ownership is at a crossroads. Pressures on providing affordable housing in all tenures have intensified and are unlikely to subside in the foreseeable future. By far the most successful low-cost home-ownership initiative was the Right-to-Buy. It was superseded by shared equity/ownership measures, which have helped significant numbers of households take a stake in owner-occupation. But the government is re-appraising its approach to low-cost home-ownership. Its commitment will be clearer following the spending review in the autumn. Meanwhile, housing associations and lenders are considering their options All will need to address fundamental questions about their commitment to low-cost home-ownership and its funding. If lenders and others want to sustain
their commitment to low-cost home- ownership, we need a frank debate about how to facilitate its funding. Can we do more to sustain those lenders already in the
current challenges Between 2004 and 2009, around 52,000 households were helped into owner- occupation through a variety of shared ownership schemes. In the four years up to 2009, 12.400 affordable new homes were completed annually. The forecast for 2009/10, however, is for just 7,800 properties, partly because a boost in spending to help sustain activity in 2008/9 has resulted in lower levels of grant funding currently and in the years ahead. It is possible, however, that other
affordable housing models – perhaps based on other tenures – may be developed to fill the gap. Some in the affordable housing sector, for example, are looking at options for providing more rented homes, at near – as well as full – market rents. The housing association model is a tried-and-trusted method of levering in private investment in support of affordable housing. There are possibilities for funding to be
attracted from a range of sources, through a number of different vehicles, for investment in housing in a variety of tenures. The kind of government funding we have seen in the past may be augmented
It’s new, it’s affordable but how can it be funded? The big question for the next decade.
or substituted by initiatives based on better use of assets, including land, or funding incentivised through tax breaks or the relaxation of planning restrictions. But the outcome remains uncertain. Meanwhile, devolved administrations in
Scotland and Wales are also looking at their own options for funding investment in affordable housing. There is potential for government at all levels to support housing in a range of tenures, potentially with increased flexibility to rent or buy over a period of time. A range of funding initiatives also
potentially creates opportunities for different types of lender. As in the mainstream mortgage market, a range of options that can be supported by smaller, local lenders as well as large, mainstream players contributes to a vibrant market, with the potential to deliver the benefits of choice and competition to housing providers.
market? Will larger lenders have the desire and capacity to provide funding? Are there opportunities for smaller, local lenders? The government appears to favour
support for shared ownership. But it will need to clarify its intentions – and the extent of its financial commitment. The CML, meanwhile, is keen to host a debate among lenders and others about the extent to which firms wish to engage with the government on the continuing provision of low-cost home-ownership, and how this can be funded.
Download the English Housing Survey at:
www.propertydrum.com/downloads/20100730
Add your own opinions to the debate:
www.propertydrum.com/articles/lowcost
PROPERTYdrum SEPTEMBER 2010 41
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68