Social housing sector makes its pitch
There have been not one but two reports out in the past 24 hours which advise the government how it can boost housebuilding at the lower end of the market – something that was woeful under the past government with its slashed grant funding and so-called affordable rent.
In a bid to shake off the toxicity of the “affordable” tag, the National Housing Federation, Joseph Rowntree Foundation and Savills have produced a report into how living rents could be set and underpin an increase in housebuilding of 80,000 homes a year. Based on what is affordable on low incomes, their local “living” rents are set at roughly 40% of the market rate – instead of the 80% the government claims is affordable. Just £3bn of public money a year could fund this programme.
Undermining unicorns: redefining affordable housing
Today’s Guardian reports on Labour plans to redefine the word “affordable”. It is a word that has caused much confusion and anger in housing circles since the current government reformed the grant system for social housing.
To be deemed affordable and thus qualify for state subsidy, new homes must be offered to tenants at a maximum of 80% of local market rents. To call this affordable betrays a staggering lack of awareness. In the real world, 80% is not much cheaper than the expensive rents set by the free market; it is not affordable to people on average incomes in expensive areas, let alone those on low incomes whom subsidised housing is supposed to prioritise.