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.

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.

A consultation on future core housing design and sustainability standards has been published by the Homes and Communities Agency (HCA). It aims to stimulate a debate on how to prioritise the quality of new housing in a challenging financial climate. It seeks views on a series of options for how the national housing and regeneration agency might design and phase in new standards and apply them to its programme. Partners and other interested parties are asked to comment on the proposals and help shape further development of the HCA’s core design and sustainability standards.

The latest generation of pod-like homes is hoping to inspire anyone concerned with sustainability and affordability and is now being touted as the newest solution to Britain’s housing shortage. Modular housing is common in Australia, the USA and Germany, but British examples have mainly been limited to one-off, self-build projects. More recently though, organisations such as the Peabody Trust have commissioned several large modular developments such as London’s Murray Grove and Baron’s Place. As well as preserving communities, flexible living negates moving costs and mortgages are available thanks to approval from National House-Building Council and CLG’s Code for Sustainable Homes scheme.

Housing associations are preparing for a funding crisis that will result in a shortfall of newly built social homes from next year. The Chartered Institute of Housing (CIH) has warned of the risk that the needs of the poorest will not be met from 2011 as public money dries up, leaving housing associations less able to finance the social rented sector. The Tenant Services Authority (TSA) said that it expected the number of homes built by housing associations to fall from 50,000 a year last year to 40,000 a year after 2011. Even at current funding levels, housing associations — the main providers of UK social housing — said that, to stay afloat, they had been forced to switch away from provision of social rented homes and towards more lucrative home ownership schemes geared towards renters on higher incomes.

The government risks repeating the mistakes of the postwar housing boom by wasting hundreds of millions of pounds on funding ‘grotty’ new homes, say MPs. The Homes and Communities Agency (HCA), which has an annual investment budget of more than £5bn, has admitted that 27 of the private-sector projects it has bailed out scored five or less out of 20 on the industry’s Building for Life benchmark, with two scoring just 1.5. Homes failed on a range of basic measures, including poor space standards and over-reliance on single-aspect dwellings; inflexibility; low sustainability standards; and poor compatibility with neighbouring properties.

With the largest council housebuilding programme for nearly two decades already underway, housing minister John Healey has doubled government cash for new council homes. Mr Healey announced 73 councils covering every region of England will share an extra £122.6m. Councils will match this second round government grant bringing investment in this round to £246m, and total public investment in the programme as a whole to over £500m to build more than 4,000 new council homes for 8,000 people. In a clear break with council houses of the past, Mr Healey also confirmed that many will be new family homes, whilst all will be highly energy efficient and add to the mixed make-up of local neighbourhoods.

People who generate electricity from home wind turbines and solar panels will not have to pay tax on the money they make by selling it to the national grid, the Chancellor announced in the pre-Budget report.

From April 2010, the £900 a year they typically make from electricity sales to the grid under so-called ‘feed-in tariffs’ will be tax-free. This will save a basic-rate taxpayer £180 a year and a higher-rate taxpayer £360 a year.

The government also announced that it would take steps to encourage poor households to generate their own electricity.

Although home generation equipment often pays for itself over its lifetime, the Treasury said, the initial costs can discourage low-income families from installing it.

Tax rebates for people who ‘go green’ by installing solar panels or wind turbines on their homes or swapping their company car for an electric vehicle will be announced by Alistair Darling tomorrow.

Although his pre-Budget report will include few giveaways as he promises to rein in a £180bn budget deficit this year, the Chancellor will give householders and drivers a financial incentive to play their part in saving the planet.

At present, people who sell electricity to the National Grid are taxed on the income. In future, it will be exempt from tax.

A householder on basic rate tax selling £900 of electricity to the grid from April would receive the full amount, instead of £720 as at present.

The average asking price for homes in England and Wales has recorded unusually strong growth in the past month, according to the property website Rightmove. The increase of 2.8 per cent in the four weeks to 10 October over the previous four-week period is one of the sharpest four-weekly rises Rightmove has ever recorded. It is the seventh time the website has recorded positive growth since February, compared with only two declines. The average asking price, at £230,184 is now 0.2 per cent higher than a year ago, when UK and global financial markets seized up. The largest increases are in London, where increased interest from buyers drove asking prices up by 6.5 per cent over the previous four weeks, says Rightmove.