Starters’ orders

So the national housing strategy now comes down to this ahead of the election: think of a big number and double it.

Even by recent standards, the starter home initiative plumbs new depths in allowing the politics to drive the policy. The idea of building 100,000 homes at a 20 per cent discount for first-time buyers was first proposed in David Cameron’s conference speech in October. The launch (of a website to register interest, as no homes will be built for some time) was accelerated to this month when the consultation was published in December. And in Cameron’s housing speech today it’s been doubled to 200,000 homes.

Housing minister Brandon Lewis made a written statement earlier that is an extraordinarily rapid government response to a consultation that only ended three weeks ago. However, the response (full version here) is only to the original plan for 100,000 homes, not Cameron’s doubling of it. Reading through some of the responses to the consultation today, I was especially struck by this comment from the Council of Mortgage Lenders:

‘Our overall view of the scheme as outlined is that it could provide a modest addition to the flow of lower cost housing for FTBs and we would support this main objective. But we would warn against setting over-ambitious targets for the scheme at this juncture, before the attractiveness of this particular proposition has been tested on the market.’

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Helping hand

So it turns out that subsidising housebuilders may not have been the best way to boost housebuilding after all.

It’s bad enough that even developers are now arguing that the government has made too many concessions to them. Now it turns out that George Osborne was warned by his own civil servants that Help to Buy could end up going to homes that would have been built anyway.

I’m catching up on a week’s worth of news that  shakes the twin pillars of government policy on housebuilding and home ownership: cutting ‘red tape’ to make sites more viable for new homes and funding equity loan and guarantee schemes to persuade people to buy them.

-> Read the rest of this post on Inside Edge 2, my blog for Inside Housing


Starter for 20

The government’s plan for starter homes with a 20 per cent discount begs all sorts of questions. Today we got some of the answers.

The scheme announced by David Cameron this morning was first trailed in his conference speech in October as an idea for after the election but has now apparently been brought forward to start early next year.

Some of the details of Dave’s Dream Homes seem to have changed along the way. According to a DCLG consultation also published today,  the starter homes initiative seems to amount to an extension of rural exceptions sites to urban areas. So how will it work?

-> Read the rest of this post on Inside Edge 2, my blog for Inside Housing


Brave new world

Guess what the total value of government financial instruments to support new homes will be by 2021.

The answer that leapt off the page at me in a report on the department’s performance published by the National Audit Office (NAO) last week is a cool £24 billion. And that is just the direct support that comes under the DCLG and its agencies.

Perhaps the figure should not come as a surprise. After all, ever since the financial crisis we’ve grown used to the government adopting new ways of financing things that do not rely on conventional spending or borrowing.

The three programmes that make up the £24 billion are £10 billion for financial guarantees to housing associations and the private rented sector to help build new homes, £9.7 billion for the Help to Buy equity loan scheme (HTB1) and £4.2 billion for other loans and investments such as Build to Rent and the large sites scheme.

-> Read the rest of this post on Inside Edge, my blog for Inside Housing


Feeling the pinch

Mark Simmonds is not getting much sympathy after claiming that MPs’ expenses make it ‘intolerable’ to live in London but has he also revealed a deeper truth about our housing system?

The MP for Boston and Skegness resigned as a minister on Monday and will leave parliament at the next election after claiming that he can’t find anywhere to rent in the capital on his £35,000 a year housing allowance.

Simmonds and his family do not exactly sound like they are among the ‘housing pinched’. These are the 1.6 million households identified in a report by the Resolution Foundation as spending more than 50 per cent of their net household income (after tax and benefits) on their rent or mortgage.

-> Read the rest of this post on Inside Edge, my blog for Inside Housing


Closed doors

What is it about a ‘poor door’ that causes so much outrage?

The term has captured something on both sides of the Atlantic: first on an exclusive development in New York City last year and then applied to agrowing trend in London reported in Saturday’s Guardian.

The London building at the centre of that story – One Commerical Street on the eastern fringes of the City – was the same one that I blogged about last year when it was chosen by chancellor George Osborne as the venue for his speech arguing that the economy was ‘turning the corner’.

-> Read the rest of this post on Inside Edge, my blog for Inside Housing


Chance of a lifetime

MPs will get the chance to back major housing reforms including new significant exemptions to the bedroom tax later this year. Will they take it?

Andrew George, the Liberal Democrat MP for St Ives, has what he describes as ‘the chance of a lifetime’ to change things through legislation after coming first in the ballot for private member’s bills. Talking to him yesterday gave me a fascinating but slightly depressing insight into how the system – and party politics – work.

He consulted his constituents on a shortlist of options including housing, a Cornish Assembly and health care standards and after more than 2,000 comments has decided to plump for an Affordable Homes Bill with four key elements:

  • Extension of Help to Buy or a new Affordable Homes Investment Bank to underpin the ‘intermediate’ market (shared equity/shared ownership/mutual housing) to construct a new lower rung on the housing ladder for those who cannot afford full ownership.
  • New exemptions to the bedroom tax for anyone who has lived at an address for more than three years or who lives in a home with disabled adaptations
  • A new Use Class for ‘non-permanent residential use’ to empower local planning authorities to control the number of second homes in their area.
  • Enhanced powers of compulsory purchase for local authorities where developers land bank development sites or fail to use sites for which planning permission has been granted but development has not advanced or where need for affordable homes cannot be met on ‘exception’ sites through community land auctions/trusts.

-> Read the rest of this post on Inside Edge, my blog for Inside Housing


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