Government cools on home ownership
Responding to the Autumn Statement’s housing announcements, Liam Booth-Smith, Chief Executive of Localis, said: “The £1.4bn injection into the Affordable Homes Programme is good news. Housing associations, developers and councils will be able to bid for a larger pot of money to fund new affordable housing. Whilst the cash figure will get the headline, the bigger change is that the grant funding will come with fewer strings attached than previously. Bidders will be able to use it to build homes for affordable rent, not just shared ownership and Rent to Buy as was the case in the previous prospectus (April 2016). As recent Localis housing reports have shown, Rent to Buy offers a more realistic path to home ownership for many, so this shift towards funding homes for affordable rent is good.
Today’s announcement is also indicative of the Government’s shift in emphasis if not away from home ownership, then certainly accepting that for many, current Government-backed home ownership products are out of reach. The fund injection is, however, a drop in the ocean. The equivalent affordable homes scheme between 2011 and 2015 was of similar financial size and ambition, and whilst fairly successful in building homes for affordable rent, it did little to stem the affordability crisis. This is a sensible and welcome move by the Chancellor, but without significant change in the upcoming housing white paper it’s a sticking plaster.”
ENDS
Notes to Editors:
- Localis is an independent think-tank dedicated to issues related to politics, public service reform and localism.