Tuesday, 31 July 2012

Is The Government Set To Merge The Two Rented Sectors?

Within the current housing and political landscape how long will it be before the Government merges the two rented sectors into one?  Already we’ve got housing associations offering market rented homes and private landlords moving into social housing – partly, because of the confidence the regulator gives investors. Social housing is rarely even mentioned in Government circles these days, with the tenure under yet more threat from Right-to-Buy – with each supposed replaceument up to 80% of the market rent. Also, the Montague review is set to recommend relaxing council requirements for social housing through section 106s in a bid to entice institutional investment in rented homes.  It was only highlighted earlier this month that taxpayers will have to fork out £17,500 in increased housing benefit costs for every new home built under the £1.8bn Affordable Rent programme. The Government is also taking steps to ensure those social tenants who can pay a market rent do, through its ‘pay to stay’ proposals. Interesting to note how this plan has gone from tackling households earning £100,000 to those earning £60,000. The obvious minus of having one rented sector would be the end of social housing which the Government is already killing off anyway. Read more of this opinion piece on 24dash.

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