Phoning home
Posted: October 1, 2012 Filed under: Affordable housing, Housebuilding Leave a commentIt’s great to see Ed Balls putting his – or rather mobile phone companies’ – money where his mouth is on housing but his speech still begs some big questions.
It’s good news too see housing finally making the headlines at the start of a Labour party conference rather than becoming a footnote before they sing The Red Flag at the end.
Media briefing ahead of the speech by the shadow chancellor was all about housing and his call for the £3-4 billion proceeds of the sale of 4G mobile phone licenses to be spent on 100,000 affordable homes and a new stamp duty holiday for first-time buyers. The idea seemed to go down pretty well with delegates judging from the applause in the hall.
Read the rest of this post at Inside Edge, my blog for Inside Housing
Third time lucky?
Posted: September 6, 2012 Filed under: Affordable housing, Housebuilding Leave a commentSo here it is: what by my reckoning the coalition government’s third housing strategy in two and a half years.
Mark one was the assumption that implementing the coalition’s programme for government would do the trick. The ‘powerful new incentive’ of the new homes bonus would persuade local authorities to approve more homes and get housebuilding moving. The Localism Act would turn help turn NIMBYs into YIMBYs. And FirstBuy would give a time-limited kick-start to the housing market with equity loans for first-time buyers.
When that didn’t work, Mark two came last November. The big idea was NewBuy, a government-backed mortgage indemnity scheme to give 95 per cent mortgages on new homes to up to 100,000 buyers. That was backed up by funds for custom homes and empty homes, a consultation on right to buy 2 and another review of investment in the private rented sector.
Give Montague a chance
Posted: August 24, 2012 Filed under: Affordable housing, Private renting Leave a commentHere’s why I think the housing backlash against the Montague report is being overdone.
From some of the reactions so far, the review group seem to a bunch of pin-striped latter-day Rachmans intent on squeezing out affordable housing and trousering the profits in between slaughtering the first born and unleashing plague, pestilence and famine.
Read the rest of this post at Inside Edge, my blog for Inside Housing
Model theory
Posted: July 10, 2012 Filed under: Affordable housing, Housing benefit Leave a commentSo is affordable rent value for money? After two hours of scrutiny from MPs we are still not much closer to an answer.
What seems clear is that between them the DCLG, HCA and housing sector have done a pretty good job of making the best of a grim situation up to 2015. What is far from clear is what that means over the next 10, 20 or 30 years.
The influential public accounts committee spent yesterday afternoon questioning experts from the sector plus Sir Bob Kerslake of the DCLG and Margaret Ritchie of the HCA. This follows publication of a report on the affordable rent programme by the National Audit Office that, as I blogged last week, left several key questions about the programme unanswered. By my reckoning I now have partial answers to two out of five questions, some more information on another two but an even more confused picture on the fifth.
Final answer?
Posted: July 4, 2012 Filed under: Affordable housing, Housing benefit Leave a commentThe verdict from the National Audit Office (NAO) on the affordable rent programme is generally positive but it still leaves several key questions unanswered.
The financial watchdog says that the DCLG has ‘so far achieved its policy objective to maximise the number of homes delivered within the available grant funding’. Grant per home was a third of previous levels, the programme was over-subscribed and 80,000 homes are being delivered against an initial target of 56,000.
The NAO concludes that:
‘The Department and the [Homes and Communities] Agency selected a design for the Programme that is projected to maximise benefits and the number of homes delivered within the constraints of the £1.8 billion capital funding available. The launch of the Programme has been successful. Providers have committed to building some 80,000 homes for the £1.8 billion of government investment, approximately 24,000 more homes than first expected. In this respect, the Programme has made a good start.’
So far, so good but the NAO also reveals several risks:
- 18 per cent of contracts had not been signed as at April 2012 (mostly local authorities that needed to confirm their borrowing capacity following HRA reform)
- more than half of the homes are planned for the final year of the programme ‘so slippage would put at risk achievement…of the planned 80,000 homes’
- some providers in London are worried they will not be able to charge the rents they originally agreed
- the DCLG needs to carry out ‘a thorough analysis of the financial position of providers to assess the repeatability’ of the programme after 2015.
In the process, the report reveals details about the programme that I at least have not seen before but it also begs some more questions.