Posted 05.12.13
In his Autumn Statement, Chancellor George Osborne announced a number of measures that have implications for the housing sectors, including:
Responses
Grainia Long, Chief Executive of the Chartered Institute of Housing (CIH), said:
"We are pleased that the Chancellor has acknowledged the principle that councils should be allowed to borrow more so they can build more homes, which CIH has been calling for.
"But the steps announced today are far too modest and there is a risk that any gains could be offset by the requirement to sell high-value social housing and the expansion of Right to Buy."
Julia Unwin, Chief Executive of the Joseph Rowntree Foundation (JRF), said:
"Today's Statement contained some encouraging economic news. However for the 13 million people living in poverty the measures outlined will not be nearly enough to tackle the rising costs and lower incomes that they face.
"The £1 billion to unlock stalled housing sites and the decision to increase the amount that local authorities can borrow to build more housing by £300 million is warmly welcome. Success will ultimately depend on the terms but both measures should help to spur additional supply.
"Higher housing costs, caused by insufficient supply, push three million more people into poverty as well as being a source of higher welfare bills.
"We all want to see a lower benefits bill, but doing so in a way which does not address the underlying causes means we risk increasing poverty, not reducing it."
National Housing Federation Chief Executive David Orr said:
"The Chancellor's acknowledgement that in order to have a stable housing market we need to focus on building more homes and regenerate economically stalled areas is welcome.
"A number of measures he announced in the Autumn Statement are steps in the right direction. The next step will be to put housing at the heart of long-term Government plans for economic recovery.
"Right to Buy already gives hundreds of thousands of people the rare opportunity to own their own home. But the homes sold through Right to Buy are not being properly replaced.
"While we support the aim to help more social housing tenants own their home, it is questionable whether providing mortgage finance, in addition to the currently available property discounts, is the most effective use of government funding. This risks increasing the number of affordable homes being sold, at a time when England faces a severe housing crisis and funding for affordable housing has been drastically cut.
If the Government is serious about increasing the number of homes, it urgently needs a plan to replace homes sold through Right to Buy and deliver the commitment for one-to-one replacements."
