ROOF Blog

Housing Minister John Healey and the Local Government Association (LGA) today announced they are launching joint work to look at how councils can deliver new homes to tackle the shortage of affordable housing and help drive economic growth. A new Commission chaired by Lord Richard Best and made up of council chief executives, housing association chief executives and academics, will assess what councils are already achieving and advise on ways councils could play an even greater part helping to build the homes of all types the country needs, as well as extending their strategic housing role to better meet local needs and aspirations. The Commission will report to Government and the LGA in summer 2010.

Millions of pounds of taxpayers’ money will be used to overpay mortgages after the Chancellor extended the Government’s mortgage rescue scheme for another six months at a fixed rate of 6.08 per cent. More than 200,000 people on certain benefits are covered by the scheme, which was set up to help families to avoid repossession. Industry figures suggest that about a third of homeowners are on standard variable rate and 15 per cent are on tracker deals. The average interest rates on these mortgages are only 4.1 per cent and 3.65 per cent respectively, well below the rate paid by the scheme.

Councils will be allowed to keep their rents and the proceeds from the sale of homes under an overhaul of local authority financing that reverses reforms from the Thatcher era. Along with borrowing freedoms that were recently introduced, this could lead to up to 10,000 extra council houses being built every year and mean 10 per cent more money a year for maintaining and managing Britain’s 1.8m remaining council homes, which are occupied by 4m people, the government said yesterday. Housing minister John Healey said the move amounted to a ‘once in a generation chance of change’ that should be welcomed by councils. Under the plans, the ‘housing revenue account’ system will be dismantled in 177 local authority areas. This would end the current system, whereby income from council housing goes into a central pot, not all of which is returned to local authorities.

Buying a home has become a pipe dream for millions of young Britons – with half believing they will have to wait up to a decade or more before getting a foot on the property ladder, and only then with the help of their parents, according to a new poll. The YouGov survey, commissioned by the National Housing Federation, revealed that 86% of 18-30 year-olds could not currently afford to buy a home if they wanted to, despite recent falls in house prices. Federation chief executive David Orr said: ‘The three main parties must commit to building significant numbers of affordable homes for rent and sale to avoid locking an entire generation out of having their own home. The next government must view housing in the same terms as health, education and policing – and protect it from budget cuts, given the scale of the crisis’.

Private sector landlords are urging support from MPs to ‘save the future of renting’ to students and young professionals. Nurses, teachers and a generation of young workers could be hit by a government plan to prohibit areas of shared housing for groups of unrelated tenants. The legislation comes into force on 6 April when new powers will allow planning legislation to be used to control the renting of shared properties to people who are not families or related tenants. Alan Ward, chairman of the Residential Landlords Association, said: The government’s change to planning Use Classes Orders is bad not only for landlords but for the whole private rented sector, not to mention the local economies that have traditionally grown around existing areas of shared housing’.

The Government has set out new plans to make Britain’s homes ‘greener, warmer and cheaper to run’. The strategy is aimed at cutting emissions from the UK’s homes by 29% by 2020. It will help people make smarter use of energy in homes, making it easier to take action and reduce bills. Installing some technologies, such as solid wall insulation, could see energy bills cut by £380 a year. The strategy will be implemented in a three stage plan: to insulate 6 million homes by the end of 2011; to have insulated all practical lofts and cavity walls by 2015; to have offered up to 7 million eco upgrades by 2020.

John Healey has published the Government’s response to the Mayor of London’s plans for affordable housing in the capital. He warns that the housing strategy will not sufficiently address the capital’s needs, and outlines areas of particular concern, including plans to reduce the number of new social rented homes provided by councils and housing associations by an equivalent 2,755 homes a year compared to current plans.

Local authorities should not adopt a ‘one size fits all’ approach when granting planning permission for housing, and should move away from the approach to planning policy that led to large-scale construction of high-density flats on urban brownfield land, according to a report from the National Housing and Planning Advice Unit (NHPAU), a quango set up to advise government on housing policy. The NHPAU looked at the development of housing in a variety of densities and locations and concluded that while high-density housing was sometimes the most valuable, it often was not.

Labour’s record on tackling asylum faces a fresh onslaught today over figures that show a new backlog of 30,000 cases and a warning by the government’s immigration watchdog that its targets are currently ‘unachievable’. John Vine also makes clear that a special five-year exercise which began in 2006 to clear the legacy of 450,000 unresolved asylum cases is now unlikely to meet its July 2011 target completion date. The setbacks mean that despite progress the Labour government will go into the general election campaign unable to claim that the asylum system has been fixed after John Reid famously declared the Home Office’s immigration directorate ‘unfit for purpose’ in May 2006.

Fears of a double-dip recession and a sterling crisis in the run-up to the election were raised last night amid news of collapsing investment in British industry and a warning from one of the world’s leading financiers that the pound could plummet within weeks. The pound fell sharply on the foreign exchange markets after a day of grim economic news which saw an admission from RBS that it had missed government targets for business lending, a downgrading of the UK growth prospects by the European commission and a warning from the CBI that consumer spending was likely to remain weak ahead of polling day.