Section: Housing Finance
New Regulations
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The Home Loss Payments (Prescribed Amounts)(England) Regulations 2005 SI 1635
These Regulations increase the amount of Home Loss Payments payable under section 30 of the Land Compensation Act 1973 and formerly prescribed in the Home Loss Payments (Prescribed Amounts)(England) Regulations 2004.
A person is entitled to a Home Loss Payment when displaced from a dwelling by compulsory purchase, or in the other circumstances specified in section 29 of the Act - as last amended by the Planning and Compulsory Purchase Act 2004.
Section 30(1) of the Act provides that in cases where a person occupying a dwelling on the date of displacement has an owner's interest, the amount of Home Loss Payment is calculated as a percentage of the market value of the interest, subject to a maximum and minimum amount. Section 30(2) prescribes the amount of the Home Loss Payment in any other case.
Regulation 2(2)(a) of these Regulations increases the amount payable under section 30(1) of the Act from £34,000 to £38,000 and regulation 2(2)(b) increases the minimum amount from £3,400 to £3,800. Regulation 2(3) increases the Home Loss Payment under section 30(2) of the Act in any other case from £3,400 to £3,800.
The revised amounts apply where the displacement occurs on or after 1 September 2005.
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The Home Loss Payments (Prescribed Amounts) (Wales) Regulations 2005 SI 1808 (W.139)
These Regulations introduce similar changes to the above, in Wales.
Housing Corporation Circulars
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Circular 04/05: The Housing (Service Charge Loans) Regulation 1992
The Housing (Service Charge Loans) Regulations 1992 came into force on 17 August 1992. They state that, provided certain conditions are met, some leaseholders have the right to request a loan from the Housing Corporation towards the cost of service charges for major repairs.
This Circular advises housing associations of the Right to a Loan from the Corporation for the year ending 31 March 2006. It replaces Circular 05/04.
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Recycled Capital Grant Funds and Disposal Proceeds Funds Review
The Recycled Capital Grant Funds and the Disposal Proceeds Funds were introduced by the Housing Act 1996. They allow housing associations to retain and reinvest the resources that are released when they sell a grant-funded property. This consultation paper is part of the first formal review of the Funds.
HomeBuy Scheme Details Announced
The Government gave more details about its HomeBuy scheme, which aims to help around 100,000 households into homeownership by the year 2010 through simple, streamlined, and more affordable routes.
Under the proposals, there would be three HomeBuy products, all based on the idea of equity sharing:
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Social HomeBuy, enabling social tenants to buy a share in their current home.
A minimum initial purchase of at least 25% of the cost of a home would apply, with the remainder of the equity being held by a housing provider. The provider would be able to levy a charge of up to 3% on their equity (a lower target average for the charge would be set at 2.75%).Buyers under the scheme would also receive a discount on the total purchase price of their home. At least initially, there would be some flexibility in the precise terms of the scheme, to ensure a scheme that works well for both providers and buyers, and to trial different products.
Receipts generated by Social HomeBuy sales would generally be used to provide more social lettings, with a possible small proportion going toward other housing related projects.
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New Build HomeBuy, enabling people to buy a share in a newly built property.
A minimum initial purchase of at least 25% of the cost of a new build home would apply, with the remainder of the equity being held by a housing provider. The provider would be able to levy a charge of up to 3% on their equity (a lower target average for the charge would be set at 2.75%). The scheme would be open to the same groups eligible for Open Market HomeBuy (see below).
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Open Market HomeBuy, enabling people in London, South East, and Eastern regions to buy a property on the open market with the help of an equity loan. Purchasers would need to raise funds for an initial purchase of 75% of the cost of a home on the open market, with a housing provider providing a loan for the balance required. A small charge may be made on the equity share held by the provider.
The scheme would be available to eligible key public sector workers, social tenants, those on housing waiting lists, and other first time buyers identified as priorities by Regional Housing Boards. The definition of a key worker will be extended from the one in current use.
The Government will be keeping the Zone Agent model currently utilised under the Key Worker Living scheme. This will provide a one-stop-shop for all affordable housing options in a given area.
Note:
Homeowners who have been assisted by the current HomeBuy scheme are now able to use a percentage of any increase in the value of their property to increase their borrowing to finance repairs or improvements to their properties.
EC Ruling on Housing Grant
European Commissioners agreed on an exemption for housing organisations from a ruling that would have classed social housing grant as state aid. Had that have happened, all grants made to housing organisations would have been subject to the slow bureaucratic process of seeking approval of European Commission officials.
A Dutch MEP had questioned the proposed exemption recommendation, arguing that it was possibly unfair on any competitors.
© Copyright 1996 - 2008 UK Housing Ltd. Housing Monthly Diary
Issue: September 2005 Reporting on May-August 2005
- Antisocial Behaviour & Nuisance
- Community Care
- Heating & Energy Efficiency
- Homelessness & Asylum Seekers
- Housing Benefits
- Housing Finance
- Housing Legislation
- Housing Management
- Housing Ombudsman
- Ministerial Update
- Right to Buy
- Security of Tenure
- Travellers and Gypsies
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