Six Times More Affordable Homes Built Than Are Traded Or Sold

The asset management approach of housing associations means six times as many new sub-market rented homes are built as are sold, Savills’ research reveals. The findings come after housing associations received criticism in some media for selling social housing out of the sector for non-social housing use. Savills also found that the number of homes traded between social housing providers has fallen 50% in the past six years. As a result, Savills suggests “stock rationalisation should be higher on the agenda” to maximise financial capacity to build more affordable homes. Read more on the Savills website.

https://www.savills.co.uk/research_articles/229130/272268-0

Affordable Housing: Construction – Parliamentary Written Answer

Lord Taylor of Warwick: To ask Her Majesty's Government what assessment they have made of the claim by the Centre of Social Justice in its report, A Social Housing Strategy, published on 27 October, that designated affordable new homes do not reduce the housing benefit bill.

Lord Bourne of Aberystwyth: We have not directly carried out an assessment in response to the claim made by the Centre for Social Justice. However, new affordable housing reduces pressure on the Housing Benefit bill by enabling people to live in sub-market rent homes which, on average, have lower associated housing benefit costs than the Local housing Allowance on an equivalent home in the private rented sector.

https://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Lords/2018-10-29/HL11102

80% Of Government Housing Funding Is On Private Housing

Analysis of government figures by the CIH shows projected government investment through to 2020/21 will funnel £32bn into private programmes and £8bn into programmes for shared ownership and sub-market rent. The largest investment in private housing is the £12.5bn bill for the Help to Buy: Equity Loan scheme. Help to Buy ISAs, the Help to Buy guarantee scheme, and private rented sector guarantees cash make up the remainder of the funding. This investment is in the form of loans and guaranteed debt, rather than direct government spending. Its investment in affordable housing comprises mainly £4.3bn of grant under the Affordable Homes Programme. Read more on Inside Housing.

5,000 'Rent To Buy' Homes Set To Be Built With £700m Funding

A housing company is looking for £700m of institutional investment to build 5,000 homes across England for tenants to buy without saving for a deposit. RentPlus, a new Plymouth-based firm, plans to build the swathe of new housing over five years across the south-west, Cambridgeshire and East Anglia. The homes will initially be let at sub-market rent, with tenants eventually able to purchase their properties. Under the model, housing associations lease the homes from RentPlus and offer a series of five-year renewable tenancies of up to 20 years, with tenants given the option to buy their home at the end of each five-year period. Read more on Inside Housing.