The End Of Council Housing

John Harris takes a look at the Housing Bill and how it is likely to affect the residents of Quaker Court, a 50 year-old estate, close to the City of London. The estate has mixed tenure – 50% social housing, right to buy properties, buy to let properties etc. Residents are most likely to be affected by the Pay to Stay which could push rents up from $160, including all bills, to a market rent of £600, not counting bills.  Read more on the Guardian website.

Property Prices Are Not Reduced By Integrated Social Housing

New research by the NHBC Foundation has found that house prices are not reduced on developments which successfully integrate social and private housing. The research, 'Tenure Integration in housing developments' found that mixed tenure developments are now commonplace in the UK and, contrary to fears, do not negatively impact house prices as long as the design and the quality of the housing is of a high standard. The NHBC Foundation, in collaboration with the HCA, commissioned a review of existing literature to explore issues surrounding tenure integration in new housing developments. It concludes that mixed tenure is now a part of UK life with most researchers agreeing that single tenure developments are now a thing of the past. Read more on the NHBC website.

Regulator Drops Ring-Fencing Plans

The social housing regulator has dropped controversial plans to make landlords ring-fence their social housing assets.  Julian Ashby, chair of the HCA, has confirmed the change of approach.  A HCA discussion paper published in April suggested ring-fencing measures to protect social assets from riskier activities. These included limits on non-social activity as a percentage of turnover and restrictions on using social housing assets as loan security.  However, following widespread concern from landlords, the regulator has now ditched the plans for all non-profit associations which have parent companies registered with the HCA. Landlords had warned the plans would restrict their ability to carry out mixed-tenure developments and community projects. Read more on Inside Housing.

Councils Cut Cash Deals In Place Of New Homes

The amount of cash accepted by councils from developers in place of new affordable homes has nearly trebled in two years. An Inside Housing survey of 161 English councils reveals 74 authorities accepted £67 million of ‘commuted sums’ paid in lieu of affordable homes on development sites in 2011/12. This compares with 51 councils [out of the same 161] accepting £28.9 million in 2010/11 and 39 councils accepting £23.4 million in 2009/10. The figures show authorities are increasingly accepting developers’ arguments that it is not viable for them to include affordable housing in schemes in the current economic environment. This is despite it being a planning condition, known as a section 106 obligation. Councils insist commuted sums are ring-fenced for affordable housing elsewhere, but it is feared the cash may not always be collected properly or may be used for other purposes. There are also warnings that commuted sums could lead to fewer affordable homes being built, and prevent the creation of mixed-tenure communities. Read more on Inside Housing.