Member Article

Government Housing Bill Met With Criticism

In the Queen’s speech on 27th May, one of the most publicly discussed topics was the new Housing Bill. This will include extension of the right-to-buy scheme, removal of housing benefit for 18-21 year old jobseekers and a Brownfield regeneration fund to help developers build new homes.

The extension of right-to-buy to give 1.3 million social housing tenants in England the chance to buy their rented home at a discount of up to 70% if they have lived there for three or more years. Rejected by Scottish and Welsh governments, the scheme has been met with much criticism.

Local authorities will be required to sell their most expensive properties when they become vacant and use the funds to then compensate the housing associations having to sell their stock at discounted rates.

One of the main features of the Conservative election manifesto, the government plan to build 200,000 new ‘starter homes’ which are to be sold at a 20% discount to first time buyers under the age of 40. The Brownfield regeneration fund will create a register of Brownfield land in an aim to make it easier for developers to find suitable sites to build upon.

Richard Ponton, director at Newcastle based property agency Walton Robinson, commented; “Local authorities releasing more valuable properties will increase supply for a time, and extending Right to Buy will make some housing more affordable, but both measures appear very short term and are likely to have limited impact on the wider market. The real issue is the availability of housing. Whether this is rental stock, or properties to buy, the availability across the board needs to increase, rather than simply changing rental stock to owner-occupied accommodation. To make this happen the government needs to make building and developing easier and quicker, both financially and practically, so that house builders and developers can quickly identify opportunities, gain consent, secure funding and complete the homes the market is so desperate for. Compiling a register of Brownfield sites may make some land acquisition easier, but there should also be a heavy emphasis placed on financial institutions to free up capital for investment, and on local planners to be progressive in their dealings with applications.”

Melanie Leech, Chief Executive of the British Property Federation said; “We need decisive action and a clear vision for how government will turbo-charge housebuilding if we are to deliver the homes that future generations need.

“Last year’s Lyons Review looked at the entire planning system and came up with thoughtful and practical recommendations as to how we might increase the provision of all housing tenures, across the whole country. We would recommend that the government considers carefully the recommendations that were made in this report.

“We would also urge government to tread carefully with Right to Buy. Handled badly, it has the potential to not only exacerbate the housing crisis but to make the regeneration of our towns and cities that much harder.”

Henry Gregg, an assistant director at the National Housing Federation said; “This policy is not a genuine solution to our housing crisis. An extension to the Right to Buy would mean that housing associations are working to keep pace with replacements rather than building homes for the millions stuck on waiting lists. At a time when we need to be increasing the overall amount of social housing, it is like trying to fill a bathtub with the plug taken out.

“What’s more, forcing housing associations to sell of their properties under the Right to Buy sets an extremely dangerous precedent of government interference in independent business.

“We fully support the aspiration of homeownership, but this policy does nothing for the 11 million private renters and three million adult children living at home with their parents. If there is £22.5 billion of public money available for housing, we should use it to build the homes the next generation needs, not just gift it to the lucky few already housed in housing association homes.”

This was posted in Bdaily's Members' News section by Sally Bettinson .