Housing Strategy Key Points

by Property118.com News Team

14:22 PM, 21st November 2011
About 9 years ago

Housing Strategy Key Points

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Housing Strategy Key Points

The much awaited Government housing strategy was unveiled today with many seeing it not as the “radical and unashamedly ambitious strategy” professed in the foreword, but as simply not radical enough.

The private rented sector is set to be boosted by tax changes as stamp duty will be assessed on the average value of individual properties instead of on the overall value of the portfolio and the Government is also pushing to develop Real Estate Investment Trusts to remove obstacles from in front of investors.

Homes built specifically for buy to let could be funded by major investors and landlords are to be given help to fully understand their responsibilities.

Some of the worst concentrations of empty homes will be tackled with an additional £50million fund and councils will be rewarded through the New Homes Bonus for bringing them back into the market. There are also plans for consultation on a council tax premium to be introduced on homes that have been empty for two years.

The Government will have 170,000 new affordable homes available through the Affordable New Homes Programme as £1billion worth of contracts have been confirmed out of the £1.8bn pot. More land is to become available for new builds too in a “build now, pay later” proposal, supposedly set to free up land for 100,000 new homes.

Stalled projects have also been given a boost as the Get Britain Building’s £400m fund is expected to help finish 16,000 new homes. Self-builds are to be boosted by a £30 million injection to help cover finances.

Social Housing is to be revamped, tenancies will be reassessed to ensure high-earners aren’t paying too little; housing providers can charge market rate. Right-to-buy homes could be sold at half their value and they are to replace every right-to-buy with one for rent. Local Councils are to take control of their stock too, financially and how they allocate it. Home-owners will no longer find it as easy to obtain social housing too.

All new homes will be built to Zero Carbon homes standard by 2016 and there was further confirmation of the Green Deal as Government continued to push for greener homes.

You can read the report in full here.



Comments

Mary Latham

14:48 PM, 21st November 2011
About 9 years ago

They will be setting up independent review to look at barriers to greater large-scale investment in rented housing.

Top of the list must be Universal Credit and other reductions in benefits which will impact on the ability of some people to pay their rent.

Followed closely by a reduction in the time it takes the PRS to legally remove a bad tenant

No return - no investment simples!

Annette Cranstoun

8:54 AM, 24th November 2011
About 9 years ago

Had a lady from Sheffield University visit yesterday doing a survey on what effects the new measures would have on landlords. Currently, my 3 properties (1 bed ) are let to social housing tenants and their rental allowance is £346.00 per month. The rentals are £400.00 per month which the tenant funds the shortfall. The area that these properties are in will have a new banding from 2012 and the rental income paid by the benefits agency will be reduced to just over £200.00 per month. The tenants are highly unlikely to be able to cover this shortfall. This does not make letting out these properties viable and I wil be removing myself from the rental market. I was not aware that any such reductions were to be made. As I have no mortgages on these properties, at that level of income, they will return me just under 2% without taking into account any costs or expenses. I might just as well put my money in the bank and see a similar return without any problems. I only have the 3 properties which were bought to make up our pensions. The sooner I am out of the market, the better.

Tony Atkins

10:43 AM, 24th November 2011
About 9 years ago

Annette - why not just dump the social housing tenants and switch to private-sector tenants or flat-share? I don't know where you're located, but in most areas there is huge demand for private-sector rentals: single people or couples with jobs, students with more disposable income now that fees only have to be repaid in the future rather than annually, and two people prepared to share a bedroom or use the lounge as a bedroom at night. The last arrangement isn't ideal but I have known examples such as two male or female international students who are friends and regard sharing a room with two single beds as perfectly normal. It's also still quite common in housing provided by universities, so you may find people prepared to do this provided the rent is low: £200 per person sounds a bargain!


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