Third of Re-Lets At 80% of Market Rate Could Create 7,800 New Homes

Up to 7,800 homes a year could be created on the back of housing associations charging rents at 80% of the market rate on a third of their re-lets, research by Hometrack suggests. This would generate a maximum of £793m of extra borrowing capacity a year. The data, which assumes that 20% of the cost of a unit is covered by subsidy, is based on all stock provided by all RSLs in the country. Hometrack concludes that the subsidy required to generate the homes would be £198m a year. The calculations are based on figures for stock owned by housing associations and their current turnover rates. The National Housing Federation (NHF) has warned that with a 63% cut to the housing budget, for the Government to deliver housing at scale, all tenants moving into newly built homes will have to be charged at the new, near-market rents, as well as one in four re-lets for tenants moving into existing social homes. Read more on 24dash.