Social Rented Housing: Construction – Parliamentary Written Answer

Oliver Colvile:  To ask the Secretary of State for Communities and Local Government, how many affordable rent-to-buy houses are being constructed.

Brandon Lewis: Through the Autumn Statement 2015, the Government has committed to investing £8 billion to deliver over 400,000 affordable housing starts by 2020/21. This includes £1.7 billion to deliver around 100,000 homes for affordable or intermediate rent, of which 10,000 are to be affordable rent to buy homes that enable tenants to have the opportunity to save for a deposit while renting. Bids into the Rent to Buy 2015-2017 programme are currently being considered. The prospectus for the new Affordable Homes Programme 2016-21 will be launched shortly.

'Insane' Proposal to Let Flats at 'Intermediate' Rents

A proposal by Westminster Council to let social housing flats at ‘intermediate rents’ to those earning over £50,000 a year has been blasted as "insane".  The London borough's Labour Group has complained that, with 1,000 families living in overcrowded conditions, the "insanity of Westminster’s housing policy knows no bounds". Councillor Guthrie McKie, Labour spokesperson for housing, said: “The council has given up trying to find housing solutions for the 1,000 Westminster families living in overcrowded and 400 families in unsuitable housing conditions.” Read more on 24dash.

Subsidy Withdrawal Heavily Criticised

The coalition government’s decision to bring the curtain down on social housing has shocked senior figures across the sector and beyond. The move brings an end to 65 years of direct subsidy for social housing. Although there have been years when subsidy has been cut, and there have been policies such as the right to buy, which have reduced stock, the coalition government’s intention not to fund social housing is a first. Glen Bramley, professor of housing, planning and urban studies at Heriot-Watt University has carried out work for the CLG modelling housing need and looking at different funding regimes. He said he is not sure the government’s proposal will deliver the 150,000 affordable homes planned. Mr Bramley said: ‘This vision of social housing is off the wall. I don’t think it makes sense for them to push low-income benefit households into intermediate rents, it will make the poverty trap worse and seems to fly in the face of want the government says it wants to do.’ Read more on Inside Housing.

Rent Rises to Be Lower Than Expected

New intermediate rents will be charged at 80 per cent of local housing allowance levels not of open market rent. Chancellor George Osborne last week announced new tenants will be offered rents of 80 per cent of market levels. But it has now emerged rents will be set at 80 per cent of LHA, which will be capped at between £250 and £400 per week depending on property size. This would mean rent increases would be slightly lower than originally expected in some areas of the country. Read more on Inside Housing.

Birmingham to Build Homes for Intermediate Rent

Birmingham council is planning to set up a joint venture with private developers to build homes for intermediate rent. Under the plans a joint venture organisation would be set up between the council and private businesses, with a thirty-year life, to produce homes that sit between social and private rents. A spokesperson for the council said it wanted to fill a gap for people who could not afford the private rented sector but did not qualify for social housing, as well as use the high volume of brownfield land owned by the council. Read the full story on Inside Housing.