ROOF Blog

A £13 million manor house looking out across one of Paris’ most exclusive squares has become France’s most desirable squat. The vast 17th-century property boasts listed rooms with period painted wooden beams and panelling and a spectacular view over the Place des Vosges. It has not been lived in for more than 40 years. The squatters broke into the property to draw attention to the plight of low-paid workers unable to afford housing while countless properties are left vacant. They belong to a group called ‘Black Thursday’, created by four students appalled at the sky-high rents they were required to pay for even the smallest properties. They want more social housing, which has a waiting list of 1.2 million people, and have the support of local Green and Left-wing politicians.

Shelter has launched new research showing how the lack of affordable homes in Britain is forcing couples who have split to remain living together. In our survey, nearly a quarter of people – the equivalent of 9.9 million adults - said they or someone they know have had to stay living with their partner because they cannot afford to live on their own. The figures come from new research undertaken by the charity to examine the way unaffordable housing is changing the way we live. Kay Boycott, director of policy and campaigns at Shelter said: ‘As a nation we have accepted the way housing costs have risen hugely over the last few years, but are we ready to accept the human cost this brings?’

The number of first-time buyers has dropped to its lowest point in a decade despite a significant rise in the number of affordable homes over the past year, according to figures released by the Halifax. Tighter mortgage lending criteria, recent price rises in some areas and lack of money for a deposit meant that an estimated 185,000 first-time buyers entered the market in 2009, four per cent fewer than in 2008 and just over a third of the 532,000 who bought when prices were soaring in 2002. These combined obstacles have pushed up the average age of a first-time buyer from 29 to 30, while the typical age of those buying without financial help from family or friends has risen to 36 from 33 in late 2007.

Charities are urging the government to do more to help tenants, claiming 1.3 million low income households are struggling with their finances.

Shelter and the Money Advice Trust said 90 per cent of households earning under £20,000 (£25,000 in London) are in financial trouble, compared to 56 per cent in 2006.

They want the government to address affordability in the private rented sector and offer advice and support. Nearly 50 per cent of those in trouble had not received advice in the last year.

According to the survey carried out by the two charities, four out of 10 people on low incomes said their debts were impacting on their health – rising to 50 per cent among households with children.

It also found 60 per cent of households in receipt of housing benefits or local housing allowance received less than the cost of their rent.

Shelter director of policy and campaigns, Kay Boycott, said many tenants at the lower end of the private rented sector faced a ‘daily battle’ to ‘keep their heads above water’.

‘The government must recognise the significant role the private rented sector is playing in bearing the brunt of this recession by increasing funding for advice and support services, and setting out a long-term vision for the sector,’ she said.

Tenants living in social housing would be able to benefit from a national house-swap scheme planned by the Conservatives, Grant Shapps, the shadow housing minister, said today.

He told the National Housing Federation conference that the Tories wanted to make it as easy for social tenants to move as it is for people living in private housing.

Under the current arrangements, social tenants are four times less likely to move than people who rent privately.

‘If you are a social tenant, you don’t have the same opportunities as other renters or home-owners. The system means that your aspirations are squeezed, your expectations lowered, and your horizons are limited,’ Mr Shapps said.

‘Today I can announce that a future Conservative government will facilitate a nationwide affordable-house-swap programme.

‘We will introduce an open database connectivity platform to ensure that – for the first time ever – every family in social housing will have the chance to relocate by exchanging their home for another one, anywhere in the country.’

Borrowers have been warned of soaring mortgage fees after the Financial Services Authority (FSA) called for lenders to assess income and spending in greater detail before approving loans.

Lenders are already under fire for introducing application charges of up to £1,000, which you lose if you back out or the loan offer is withdrawn – a problem not uncommon in today’s mortgage market.

Brokers say that plans by the Financial Services Authority (FSA) to make all borrowers pass an ‘affordability test’ that scrutinises their spending habits mean that fees could go even higher.

Savills Private Finance broker Melanie Bien said: ‘Any step-up in regulation means more cost, and higher costs tend to be passed on to consumers.

‘Lenders are likely to favour higher charges over the alternative option of increasing interest rates as it is a less visible way of raising costs.

‘This will be unhelpful, especially for first-time buyers, for whom every penny counts.’

Tenants who receive local housing allowance (LHA) will be able to choose to have their rent money paid directly to their landlord if the Conservatives win next year’s general election. Grant Shapps, shadow housing minister, will announce today at the Crisis national conference in Birmingham that a Conservative government will revert to the way housing benefits were handled before last year’s government reforms, which are due to be reviewed before April 2010. Shapps is expected to say that the current system is deterring landlords from renting property to tenants receiving LHA: ‘Fearful that rent money may never be paid, some landlords routinely include the words ‘No HB’ in their ads, further restricting the supply of housing for affordable rent.’

Research out today has found first-time buyers are taking out loans to afford the deposit. Thirteen per cent of 18- to 34-year-olds are considering buying a property for the first time in the next year, but of those, 16 per cent say they will consider taking out a loan to cover the deposit. Critics have warned that it is a ‘dangerous move’ and have called for lenders to assess the affordability of a mortgage on a case by case basis. The average deposit for a first-time buyer is £32,000.

The prime minister has written to housing professionals to reiterate his commitment to housing as one of his top priorities. He said that it was the right time to commit an additional £1.5 billion to build an extra 20,000 affordable new homes in the next two years, and by making ‘tough decisions’ such as reallocating departmental budgets we can ‘meet our obligations to a fairer, stronger and more prosperous society’.

According to the latest National Housing Planning and Advice Unit’s survey on housing, attitudes to new housing developments need to change ‘as a matter of urgency’. More than half of current homeowners (51 per cent) would object to new housing being built in their area, despite continuing home affordability issues where as many as 90 per cent of young people cannot afford an average first-time buyer’s house. By comparison less than a third of non-homeowners (31 per cent) would object. Despite the average house price fall of 22 per cent, almost nine out of ten young people cannot afford to buy an averagely priced first-time home.