Posts with tag: Affordable housing

Affordable Housing Firm’s CEO on What the Budget Should Include

Published On: July 7, 2015 at 4:06 pm

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Brian Johnson is the CEO of one of the UK’s leading affordable housing and care providers.

He speaks of what the July Budget, scheduled for Wednesday 8th July, should include.

“The upcoming Budget is being promoted as a stability Budget, with a continued focus on reducing the deficit,” he says.

Affordable Housing Firm's CEO on What the Budget Should Include

Affordable Housing Firm’s CEO on What the Budget Should Include

He explains what the affordable housing sector needs: “For our sector, if we’re to continue to play a major part in tackling the housing shortage, stability and certainty are key. I have written before about how we are much more affected by the cyclical nature of the market than in the past and the constraints that this can create.”

Johnson continues: “For example, if market sales slow down there will be implications for our building pipeline. Similarly, further welfare reforms – particularly the benefit cap – will impact on the number or type of affordable homes that we’re able to build.

“Even in a stable market some associations, just like commercial house builders, will begin to hit gearing constraints and others could begin to run out of security to borrow against, causing building numbers to fall off a cliff.”

Johnson says what the Budget must do: “Many of these risks can be managed but a level of certainty from this Budget and into the future will allow us to deliver more for more people. That’s why sufficient and sustainable should be the watch-words for housing, both in this Budget and into the comprehensive spending review.”

He is clear about what the industry needs: “That means sufficient funding to maintain our building pipeline and mitigate risks from big policy changes, and sustainable funding for the longer term so we can be confident when we’re writing out business plans.”

However, he says that this is not just about delivering more homes: “It is also about the real social value we deliver on the ground.”

Johnson is planning ahead: “In September we’ll be publishing a report on what more we can do as an organisation and as a sector to enable more people in social housing or receiving social care to achieve more of their own ambitions – whatever that may mean for individuals.

“In the meantime, if it is to deliver real stability in the housing sector, this Budget needs to deliver certainty as well as savings. We know the headlines that could affect our sector in the coming years: welfare reforms, changes to the Right to Buy and perhaps even moves towards greater regulatory freedoms.”

Johnson concludes: “Ultimately the devil will be in the detail and the sooner we can respond to those details and adjust our business models, the better. This is true for us but more importantly for the people we serve.”1 

1 http://www.insidehousing.co.uk/debate/expert-opinion/firm-footing/7010627.article?adfesuccess=1

Global Cities Expert Warns About Affordable Housing

Published On: July 2, 2015 at 4:57 pm

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The boss of a global cities organisation says that London must challenge the threat of social inequality.

The head of international group 100 Resilient Cities (100RC), Michael Berkowitz, says that world cities including London face a major threat if they do not address the lack of affordable housing and growing social inequality.

Global Cities Expert Warns About Affordable Housing

Global Cities Expert Warns About Affordable Housing

100RC is a $100m initiative launched two years ago and is funded by the Rockefeller Foundation. Berkowitz believes that equity and social cohesion are two of the “critical issues” faced by major cities due to the pace of urbanisation.

His cautions arrive as 100RC opens its regional headquarters in Clerkenwell to serve cities in the Middle East and Europe, including London, Bristol and Glasgow.

He warns: “Equity and social cohesion are two of the critical issues that we are seeing in resilient cities around the world. In the US, the debate is partly about recognising that black lives matter.

“London is interesting because it’s an old city, but it is growing almost at the pace of a developing world city. We don’t know what is going to hit the city next. Is it going to be a cop shooting someone in Tottenham, a major blackout or another 7/7 – who knows?

“But cities where people feel bought in can survive. Cities where you have high inequality, a lack of social cohesion and where people don’t trust the authorities – that can be a spark.”

Speaking specifically on the affordable housing crisis in London, Berkowitz says: “Everyone we talk to has mentioned this housing crunch.”

He adds that New York City has similar challenges and that Mayor Bill de Blasio is working on a major initiative to ensure that all residents live within a 40-minute commute of a good job. As well as providing affordable housing, this scheme hopes to encourage commercial and industrial businesses into other parts of the city. They are generally located in downtown and midtown Manhattan.

Berkowitz continues: “I’m generally in favour of densification because this promotes walking and cycling, but you’ve got to do this in the right way with good neighbourhoods and good streets.”1 

100RC is a global network of 67 cities and works with city mayors and public officials, as well as the private sector to address threats including terrorism, cyber-security, infrastructure and the environment.

1 http://www.architectsjournal.co.uk/8685621.article?WT.tsrc=email&WT.mc_id=Newsletter2

Cabinet Minister Will Warn that the Young Face Housing Exile

Published On: July 2, 2015 at 3:58 pm

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A cabinet minister will warn that many young people are being “exiled” from the neighbourhood that they grew up in due to a lack of affordable housing.

Greg Clark, Communities Secretary, will tell council leaders that it is a “defining test” for any government to provide homes that keep the “chain of community.”

Acting Leader of the Labour party, Harriet Harman, will tell the conference that the housing shortage is now “chronic”. She will also say that Conservative plans to extend Right to Buy to housing association tenants will make matters worse.

The four hopeful Labour leaders – Andy Burnham, Yvette Cooper, Liz Kendall and Jeremy Corbyn – will also speak at the annual Local Government Association conference in Harrogate, detailing ideas on housing and decentralisation.

In his first major speech since joining the cabinet, Mr. Clark will set out a proposal to hand powers to England’s cities and regions, pressing council leaders to “take power now [from Whitehall]”.

Cabinet Minister Will Warn that the Young Face Housing Exile

Cabinet Minister Will Warn that the Young Face Housing Exile

Mr. Clark will argue that devolving transport, skills and housing budgets to local authorities on collective and individual terms will help release economic opportunities and create “a nation of muscular communities – north and south, town and country.”

However, he will also accept the scale of the challenge that the country faces to ensure housing supply keeps up with demand and the social dislocation caused by the shortage of affordable housing to buy or rent in many areas of the country.

He will say: “For centuries, to be exiled – to be sent away – was considered to be an extreme penalty, reserved for the most serious of offences against the community.

“Yet in many parts of our country, it has become normal for young people to leave, though not out of choice. This might be to find work, but more and more, it is to find a home that they can afford.

“If we want to maintain the chain of community and a place for the next generation, then we must make sure we have the homes to welcome them to. The responsibility lies with us – national and local leaders alike.

“It is a defining test of our generation of leaders that we care for and resolve the fears and foreboding of the next generation when it comes to that most basic of questions – where and what will I call home?”1 

The amount of new homes completed in 2014 – 118,760 – was substantially higher than in 2013, but still much lower than the 2007 peak, before the financial crisis.

Ms Harman will say that Conservative plans to extend the Right to Buy scheme, by requiring housing associations to sell their properties at a discount to their tenants will “make the affordable housing crisis worse.”

The scheme would be partly funded by forcing local councils to sell off their most valuable assets when they become vacant.

Councils will then be expected to replace this stock on a one-for-one basis, however, the National Housing Federation (NHF) warns that since 2012, just 46% of homes sold in this way have been replaced, reducing the overall number of properties for rent.

Ms Harman will also say that ministers have not explained how the scheme will work, and risks worsening already falling homeownership levels and the length of time people have to wait to buy a house.

She will continue: “Ultimately, we’ll see what the Government brings forward, but the test for any housing policy must be whether it eases rather than deepens the housing crisis.

“Proposals which don’t address the key problem – the chronic shortage of homes – will see the dream of homeownership drift further and further out of reach.”1 

1 http://www.bbc.co.uk/news/uk-politics-33351686

Landlords Positive About Tenant Demand

Published On: July 2, 2015 at 1:00 pm

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Landlords Positive About Tenant Demand

Landlords Positive About Tenant Demand

Tenant demand in the second quarter (Q2) is continuing to grow, as 43% of landlords believe demand is either growing or booming, revealed research by specialist buy-to-let lender, Paragon Mortgages.

The study found that the trend for high tenant demand is strong, with continuous steady growth for the past three consecutive quarters.

This level of growth is expected to continue over the next 12 months, with over half of landlords (51%) predicting a further rise in demand.

The research also highlighted the tenant groups that landlords are most frequently renting to: Around half of landlords (47%) let to young couples, 43% to young singles and 42% to families with children.

Managing Director of Paragon Mortgages, John Heron, explains: “It is no surprise that rental demand is steadily increasing. With continued stress on the housing stock driving prices up, tough affordability hurdles for would-be buyers and a social rental sector under pressure as a result of renewed interest in Right to Buy, a steady increase in rental demand was inevitable.

“It is important that landlords continue to expand the supply of rented property in order to maintain a balance and so avoid unsustainable increases in rents. A healthy, competitive and innovative buy-to-let market is critical to this.”1

1 https://www.landlordtoday.co.uk/breaking-news/2015/6/landlords-upbeat-about-tenant-demand

UK affordable housing scheme exceeds target

Published On: June 18, 2015 at 2:47 pm

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Encouraging news has been released today with the announcement that the number of affordable homes delivered in Britain over the last five years has exceeded target.

Housing Minister Brandon Lewis said that more than 260,000 affordable homes have been provided since April 2010. A new target of delivering 275,000 homes in the next five years has now been set.

Increases

Mr Lewis announced that 60,000 affordable houses were provided during the last year, a substantial rise of 63% from the same period twelve months ago. Announcing the new target, the Housing Minister stated that there would be a £38bn public and private investment in the Affordable Homes Programme until 2020. Since the programme began in 2011, the scheme has provided 186,000 homes, which was 16,000 more than originally planned.[1]

‘This Government is determined to ensure anyone who works hard and aspires to own their own home should have the opportunity to turn their dream into a reality,’ said Lewis. ‘Our affordable housebuilding efforts are exceeding our ambitions and delivering more than 260,000 affordable homes.’[2]

UK affordable housing scheme exceeds target

UK affordable housing scheme exceeds target

He went on to state that, ‘it’s a boost to families across the country, providing them with new quality homes that are available at an affordable rent or to buy through our shared ownership scheme. This is real progress but we know there is more to do. That’s why £38bn of public and private investment will be made available over the next five years to deliver £275,000 extra affordable homes, the fastest rate of delivery for 20 years.’[3]

The Affordable Homes Programme  

Covering social rental homes, home ownership schemes and affordable rented homes, the Affordable Homes Programme is crucial in the government’s long-term economic plan.

[1] http://www.propertywire.com/news/europe/uk-affordable-homes-target-2015061810644.html

 

 

Boost for affordable housing in Dundee

Published On: June 17, 2015 at 9:30 am

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There is encouragement for affordable-housing seekers in Dundee with the news that a housing provider is to make a £3.1m investment in more than 50 properties across the city.

Carling & Co, which already has a strong portfolio of 180 properties, has purchased 45 city centre properties alongside a conversion project to develop eight more flats. This comes after the company secured a £1.5m finance package from the Bank of Scotland.

Plans

The acquisition of these properties is part of a longer-term five-year plan to develop over 1,000 homes for the affordable housing sector, both for individuals and families in need of quality dwellings.

Based in Dundee but with operations across Scotland, husband and wife partnership of Graeme and Leanne Carling pride themselves on searching for long-term investment for the affordable rental sector. Working together with agencies and charities, the business strives to support people who may find it difficult to find suitable accommodation due to their personal circumstances.

Mr Carling, who operates as the managing director of the company, said that, ‘we take a very unique view to property investment and letting. We are looking to cater for a social group which on the whole is overlooked by the private property market.’[1]

Boost for affordable housing in Dundee

Boost for affordable housing in Dundee

Principles

‘We have very strict investment principles where we won’t purchase a property that does not meet our affordable rental criteria, as guided by public sector recommendations,’ Carling continued.[1]

Steve Ayre of the Bank of Scotland, noted, ‘there is an ever-increasing demand for the provision of housing at affordable rates within this geography, particularly on the back of a number of years where the pipeline of new build and social housing development has been limited.’[1]

‘Graeme and his wife Leanne have taken a group of properties that are lying empty and have turned them into a great social enterprise,’ he added.[1]

Concluding, Ayre said that he feels Carling & Co’s work, ‘supports often the most vulnerable in our communities by offering stability and comfort, which in turn can have a really positive impact on other areas of those individuals’ lives.’[1]

[1] http://www.thecourier.co.uk/news/local/dundee/property-firm-secures-backing-for-3-1m-social-housing-venture-in-dundee-1.884234