Originally posted on November 11 on Inside Edge 2, my blog for Inside Housing
So now it is official. Brandon Lewis has confirmed that ‘affordable’ means 80% of the market rate.
His statement at a Communities and Local Government Committee hearing on the Housing Bill confirms a direction of travel that has been clear ever since the creation of ‘affordable’ rent. Starter homes at a 20% discount to the full price now represent ‘affordable’ home ownership. Needless to say, neither is exactly affordable by any conventional definition of the word.
The minister’s statement came in this exchange with Labour MP Jo Cox:
Cox: Do you think there should be a statutory definition of affordability for both rent and purchase?’
Lewis: At the moment it’s 80% of the market value, whether to rent or purchase.
Cox: But there isn’t a statutory definition.
Lewis: Well, the definition of affordability… an affordable rent is 80% of market value and affordable purchase with starter homes it would effectively be 80% of market value.
Originally posted on August 3 on Inside Edge 2, my blog for Inside Housing
Did Genesis choose the wrong book of the bible when it went through its rebranding exercise?
Reading this week’s Inside Housing, and especially the interview with chief executive Neil Hadden, an Exodus out of social housing looks a possibility in the wake of a Budget that signalled that grant will be ‘refocused’ towards home ownership in the Autumn spending review.
Except that this latter-day Moses seems to see a future as a private landlord and developer as the land of milk and honey. He is right to see the Budget as a ‘massive watershed’ and right to see that the government is no longer interested in social, or even ‘affordable’ housing. Rent cuts, the extension of the right to buy, compulsory pay to stay, reform of section 106 to benefit starter homes and possible extension of fixed-term tenancies all shout that message. The spending review only seems set to confirm that the plan is to cannibalise what’s left of affordable housing to boost home ownership. The question is how housing associations should respond.
Originally posted on July 23 on Inside Edge 2, my blog for Inside Housing
A new report aims to maximise Section 106 contributions to affordable housing but the government seems intent on moving in the opposite direction.
Rethinking Planning Obligations is the result of research for the Joseph Rowntree Foundation by a team from Oxford Brookes University and the University of East London. It notes a sharp fall in the contribution from Section 106 since the credit crunch: from 32,000 in 2006/07 (65% of all affordable homes) to 16,000 in 2012/13 (still significant but only 37% of the total). Contributions to affordable housing varied across case study areas from 2% to 87%.
The decline is partly the result of the housing market downturn: planning permissions agreed before 2007 with high proportions of affordable housing were not viable after the crunch and had to be renegotiated.
However, the government has also introduced a series of changes that make it easier for developers to argue down their contribution, and secretive viability assessments have become a key weapon. For detailed examples of how it works, see Oliver Wainwright’s story about Neo Bankside in The Guardian this week or The Bureau of Investigative Journalism’s story from May about Greenwich Peninsula.
Originally posted on July 13 on Inside Edge 2, my blog for Inside Housing
It may have important new provisions on housing and planning but the name of the government’s new productivity strategy rather gives the game away.
Described as ‘the second half of the Budget’, Fixing the Foundations was published by the Department for Business Innovation and Skills but includes chapters on housing and planning and welfare that amplify decisions taken in the first half.
But does the name remind you of anything? Go back four years and David Cameron himself was launching a ‘radical and unashamedly ambitious’ housing strategy. The title? Laying the Foundations.
Once they’ve stopped sucking air through their teeth, any builder will tell you that once you’ve laid the foundations and built on top of them, it’s enormously expensive to start to fix them. It’s also a pretty good indication that the foundations were pretty rocky to begin with.
Here’s how to build a home owning Britain
David Cameron and George Osborne
A shake-up of inheritance tax and crackdown on nimby councils will give young people a foothold on the property ladder
At a time of uncertainty abroad, here at home we will be delivering a budget next week with economic stability at its heart, offering security for working people.
Encouraging home ownership is central to that. Having your own place is an important stake in our economy. It’s also one of the best expressions of the aspirational country we want to build, where hard work is rewarded.
It’s also about social justice. We don’t want this to be a country where if you’re rich you can buy a home, but if you’re less well off you can’t. We want it to be One Nation, where whoever you are, you can get on in life.
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