Excite

More affordable homes plan comes with catch

On the face of it, reports that the Government plans to let housing associations to charge higher rents which in turn will allow for an extra 56,500 affordable homes being built by 2015, is good news.

But not so fast! The move could quite possibly lead to rents being unaffordable for tenants according to housing intelligence group Hometrack. The bright idea is to let social housing providers increase their rents until they are 80% of what people would pay in the private sector.

Housing minister Grant Shapps said: ‘With some 4.5 million people on social housing waiting lists, it's clear that not only do we need more homes, but we also need a new way of funding them, which is less dependent on Whitehall and that offers much more flexibility for landlords.

‘The new affordable rent scheme ticks both boxes. It offers landlords the freedom they need to offer a range of solutions to meet people's differing housing needs and circumstances, with greater opportunities to invest in house-building. This will provide new affordable homes which could help some of the millions of families currently on housing waiting lists, which have been let down by a rigid, outdated system that fails to meet their needs.’

United Kingdom - Excite Network Copyright ©1995 - 2017