ROOF Blog

The locations of four new eco-towns were announced yesterday – Rackheath, Norfolk; north west Bicester, Oxfordshire; Whitehall Bordon, east Hampshire; and China Clay near St Austell in Cornwall. Communities and Local Government said the government would provide £60 million in funding to provide infrastructure to support the towns and a further £5 million would be made available for councils to work on proposals for a ‘second wave’ of six more towns. Construction is not expected to start until 2016.

Meanwhile a book from the University of Warwick has found the UK’s housing market was ‘encouraged’ by the government. The investigation said the government wanted to meet the cost of support an ageing population by encouraging people to invest in housing assets as a way of accumulating wealth and making them less reliant on public pensions when they retire.

A Communities and Local Government select committee has reported that if the government is to meet its house building targets it must bring in new measures to support the mortgage market. The committee warned that the Treasury’s asset-backed guarantee scheme was not enough to kick start the housing market, and was ‘doomed to fail’. It also criticised the government for focusing on owner occupiers at the expense of the private and social rented sector.

Government figures obtained by the Conservatives show that there were 3.9 million cases of antisocial behaviour last year – or nearly 11,000 a day in England and Wales. The majority – 2.3 million cases – were reports of ‘rowdy or inconsiderate behaviour’, with 254,000 reports of nuisance neighbours. The Conservatives have said they would axe anti-social behaviour orders and introduce night time ‘grounding orders’ instead.

Housing minister John Healey has told a Common’s Treasury select committee that he would consider extending the homeowner mortgage rescue scheme beyond its current two-year limit, if the economy continues to struggle beyond 2010. He also rejected accusations that the government had been ‘complacent’ with its support for those at risk of repossession, although he warned that ‘a certain level of repossessions is inevitable’ in a recession.

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’.

However, the government has confirmed it has dropped its affordable house building target from 70,000 to 55,000 a year in the next two years, despite the additional funding, as it is now paying ‘more of the cost per house’ due to the huge reduction in section 106 agreements and other forms of private investment. The government expects to complete 55,500 affordable homes this year and 56,450 in 2010/11, but only 13,500 a year will be for social rent rather than the 45,000 out of 70,000 homes originally planned. Communities and Local Government refused to provide a regional breakdown of the reduced targets.

A recent decision by Rushcliffe borough council to refuse planning permission for a 1,200 home development on green belt land has been overturned by communities secretary John Denham. The local authority had thrown out the scheme on the grounds that it would have created traffic and resulted in a loss of green belt land, however, the secretary of state said there was an ‘urgent need’ for the release of land for housing in Rushcliffe.

Consumers could face having their mortgage and bank accounts branded with a health warning system, similar to the traffic lights system for food, in the government’s expected response to the financial crisis to be laid out today. Under the proposals the riskiest products, such as mortgages with ‘teaser rates’ which rise sharply once signed up, will be marked with warnings over the possibility they may damage household finances in the future.

The Conservatives have called for the eco-town programme to be scrapped saying that developers are running scared from the plans. Shadow housing minister Grant Schapps said the ‘small print’ of the draft legislation published last week reveal that plans for the eco-towns had now been pushed back to 2020, but John Healey said he would be making an announcement within the next two weeks on all potential eco-town sites.