ONS take £70bn of Housing Association debt off Government Balance sheet

by Property 118

9:09 AM, 17th November 2017
About 11 months ago

ONS take £70bn of Housing Association debt off Government Balance sheet

Make Text Bigger
ONS take £70bn of Housing Association debt off Government Balance sheet

In 2015 the Office for National Statistics (ONS) decided that Housing Associations were under such direct levels of control by the government they could no longer be classified as charities or private businesses and so added their debt to government borrowing.

However, new regulations going through Parliament mean the government have a sufficiently ‘hands off’ approach to Housing Associations that the ONS can take the £70bn of debt off the national balance sheet.

The question is will this allow or encourage Philip Hammond in his Budget to borrow directly for building homes?

The Government has said the change will allow Housing Associations  more freedom to fund new housing projects.

The National Housing Federation representing Housing Associations said: “This change will allow them to build on their strong track record and secure the long term finance needed to build even more affordable homes.”

Sajid Javid, the Communities Secretary, issued a veiled warning to the Chancellor for the budget that this would only lay the foundation for more homes to be built and said: “There are many, many faults in our housing market, dating back many many years. If you only fix one you will make some progress but not enough. This is a big problem and we have to think big.”

Jeremy Corbyn was critical of the announcement considering it just fiddling with the figures and that the government had no coherent plan to fix the housing crisis.

There are currently over 1.2 million families in England alone waiting for council housing with only 6,800 social rented homes were built in 2015-16.

It is hard to see how they can get anywhere near taking up the slack created by attacking private landlords, which the government did without plans to replace the supply in the first place.



Comments

Mark Alexander

9:20 AM, 17th November 2017
About 11 months ago

I find myself agreeing with Mr Corbyn on this one, now that’s a first!

NW Landlord

10:09 AM, 17th November 2017
About 11 months ago

Hi mark do you anticipate any further PRS attacks ? housing is going to be at the forefront of the budget which worries me to be honest.

Mark Alexander

10:17 AM, 17th November 2017
About 11 months ago

Reply to the comment left by NW Landlord at 17/11/2017 - 10:09
It depends on whether you consider the introduction of a Landlords Ombudsman a threat or not. Hopefully, the costs of that will not be horrendous and the additional red tape will no be too onerous for the good landlords. Whether it will result in standards improving or not remains to be seen.

There has also been talk of 'incentives' being introduced for landlords to offer tenancies for more than 12 months, but we have no detail on that yet. However, I doubt many tenants will want to commit long term so we will have to see what comes of that.

The above are the only Budget proposals that have been 'leaked' so far to my knowledge.

NW Landlord

10:21 AM, 17th November 2017
About 11 months ago

Thanks mark watch this space

LVW4

10:46 AM, 17th November 2017
About 11 months ago

Reply to the comment left by Mark Alexander at 17/11/2017 - 10:17
Any incentives would be welcome. Hammond could start by repealing s.24! 12+ months tenancies would need the buy-in from the building societies.

It is so typical of Corbyn's double standards, where he jumps on a topic for 5 minutes to make a point, then moves on. Sheer hypocrisy to mention the attack on private landlords, when Labour and the likes of Shelter supported the 'attacks' in the first place, and Osborne reacted with s.24, etc. Indeed, you only need to look around the next corner to see how those same people attack 'greedy landlords' for taking money out of the public purse to line their pockets.

Tobias Nightingale

12:27 PM, 17th November 2017
About 11 months ago

Knowing how these poltians operate their 'incentives' for 12 month tenancies will be in fact punishments if they are NOT 12 months. I read in the FT last week the treasury was thinking about of doing further 'raids' on landlords but with interest relief only just starting they wont go any further yet. Although I would ad given how many tory mps are landlords I would think that puts a block on anything drastic.

My worry is the reduction in the VAT threshold, as I am unable to find out if Hammond can reduce it without mps voting for it.

Michael Bond

12:41 PM, 17th November 2017
About 11 months ago

It is not only Conservative MPs who are Landlords in the PRS. A number of Labour MPs are as too, including Jeremy Corbyn -- who also went to a private school before attending a Grammar School. Champagne socialist?

LVW4

12:46 PM, 17th November 2017
About 11 months ago

Many MPs are landlords... of properties purchased with taxpayers' money

sam

2:57 AM, 20th November 2017
About 11 months ago

Singapore envisaged that 80% of the population will live in a council flat and planned and built accordingly.
Every Singaporean can buy one directly from the government - but only one in a life time because the flat is heavily subsidised.
There are conditions attached - such as the flat has to be owner occupied.
The scheme that underpins this ability to buy is the EPF (Employee's Provident Fund) which every employee has to contribute about 25% of wages and the employer about the same amount.
The EPF account is in the employee's own name and protected.
The government manages this Fund and pays an interest.
The fund in the EPF account can be used for housing, medical, education, support for parents, investments and pension.
The catch is everybody has to work and contribute to his own account. But then just about everybody who had worked retires a millionaire - at least retired comfortably.
There is also a thriving and lucrative PRS - but no housing associations.
I dont suppose this will work in work-shy-benefits-addicted welfare state UK ?


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Open Letter to Landlords and Shelter

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More