Posted 04.03.13
Government must commit to a public review of social and affordable housing rent policy or risk the industry grinding to a halt, according to the Chartered Institute of Housing (CIH) and housing association L&Q.
The organisations are calling for a formal Government review of rent policy with a view to proposing a new framework and long-term settlement.
The current settlement, where rents increase by RPI plus 0.5% every year, is due to come to an end in 2015. Abi Davies, CIH assistant director of policy and practice, said:
"If local authorities and housing associations are to have the confidence to plan investment in new development after 2015, then a new framework and settlement is crucial."
To kick-start debate, CIH and L&Q have put together a report - We Need to Talk About Rents - outlining potential objectives and options for rent policy post-2015.
The options, which draw on international experience, include maintaining the current dual-track system, allowing flexibility to providers to set individual rents within minimum and maximum thresholds, applying income-based rents and a re-distributive rent system.
Mike Donaldson, group director of strategy and operations at L&Q, believes that achieving clarity on rents post-2015 is essential. He said:
"We believe the three key criteria for any new system should be simplicity in applying the rules, affordability for tenants and viability for landlords."
CIH and L&Q are hoping the report will encourage debate, enabling the sector to make a strong case to Government for a new long-term rent framework that responds to the right policy objectives and delivers positive outcomes for social landlords and their communities.
Moody's Decision Shows Need for Strong Housing Leadership
Hannah Fearn, Policy and Research Manager, Guardian Housing Network
Housing Management Hub: 1st March 2013
Posted 04.03.13
The downgrading of 26 housing associations could thwart investment - but only for providers that can't demonstrate their worth.
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Poverty and Housing Costs
Steve Hilditch
Red Brick: 4th March 2013
Posted 04.03.13
The Joseph Rowntree Foundation's newly published review - The Links Between Housing and Poverty - makes fascinating reading and has some important conclusions for future housing policy.
Posted 13.03.13
Chartered Institute of Housing (CIH)
The CIH has written to Chancellor George Osborne urging him to adopt a four-point plan to deliver 100,000 new and refurbished homes for rent across the market and affordable rented sectors, creating £5.7 billion of economic activity and supporting 24,000 jobs each year.
The measures, which are set out in CIH's submission to the Budget, are:
Introducing a Stamp Duty holiday for landlords bringing empty homes back into use as rented housing - this would support bringing 5,000 homes a year back into use through private investment of £50 million a year, support 600 jobs a year and add £142 million of value to our economy per year at a maximum cost to Government of £12.5 million per year.
Giving landlords the confidence to invest for the future by providing longer term certainty on rents in the affordable housing sector post April 2015 - creating the conditions for landlords to secure around £3 billion a year of new private finance to invest in continued supply of new homes.
Amending local authority borrowing rules so they can invest more in developing new homes - releasing nearly £10 billion of investment over five years, to build 15,000 homes a year, supporting 23,500 jobs a year and adding £5.6 billion to our economy per year.
Increasing the Discretionary Housing Payments budget to £250 million per year to better support the transition to the Government's welfare reform programme.
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Federation of Master Builders (FMB)
THE Budget must include measures to make Britain's homes more energy-efficient, boosting the construction industry and helping householders protect themselves against rising fuel bills.
Brian Berry, Chief Executive of the FMB, said:
"By 2016, nine million British households could be in fuel poverty. We need action now to help get Britain building towards growth. Independent economists estimate that diverting funds into a massive public-sector programme to improve the energy-efficiency of Britain's existing 26 million homes would boost GDP by 0.2%, create 130,000 jobs and help the Government meet its own targets for cutting carbon emissions.
We want ministers to rethink the unrealistic timeline for zero-carbon homes, which was set back in 2006 before the economic slump. Our own survey of smaller housing developers found that the proposals to change Part L of the Building Regulations in October this year could add more than £3,500 to the cost of building a new house. This will discourage even more developers from building new homes, further exacerbating the desperate housing shortage and locking low and middle-income buyers out of the market.
"Finally, we need to see a cut in VAT from 20% to 5% on home renovation and repair. Britain's ageing housing stock is deteriorating as home-owners can not afford to get work done. Families are trapped in a vicious cycle, in which they can not afford to move and planning red tape makes it harder to alter their homes to meet changing need. Cutting VAT on renovation and repair would give a shot in the arm to beleaguered builders, create jobs and encourage householders to make their homes more comfortable, affordable and energy-efficient."