The British Property Federation (BPF) has called on the government to “take measures to end the affordable housing lottery which is failing many of those most in need.”
It claims there is “no chance” of meeting affordable housing needs if the provision continues at the current rate, with less than half of the required units being built each year.
The trade body says that the shortfall could be made up by the private sector, but the Government would have to support policies that would make the sector more attractive to large investors.
It calls for:
– stamp duty and VAT changes, which will even the playing field with other investors and other investments, such as commercial property;
– the introduction of unlisted, or at least, AIM-listed Real Estate Investment Trusts (REITs);
– the adoption of a consumer law approach to housing contracts, as advocated in a recent Law Commission Bill;
– the introduction of a national accreditation scheme for private landlords;
– a standard approach by councils in implementing national housing policies.
The BPF also wants planning policy to be changed so that affordable housing is not ‘presumed’ to be in perpetuity.
It also believes that the sector should draw up a ‘standard intermediate rental product’ that would incorporate some form of accreditation, and would be linked to an ombudsman. It would provide greater security of tenure, staircasing arrangements, and a tax concession or rental guarantee.
BPF residential director Ian Fletcher says: “At the moment, provision of affordable housing falls well short of what is needed and finding a home has become a lottery for people who desperately need one but can’t afford to buy.
“Kate Barker’s Review of Housing highlighted the immediate and significant need for housing for those who do not qualify for social housing, but cannot get on the ownership ladder.
“A significant expansion of rented accommodation by commercial developers and larger investors would help the thousands of such families, young couples and individuals who are currently living with relations, or in overcrowded or unsuitable accommodation.
“The expansion of the private rented sector is sometimes seen as being anti home-ownership, but what we are proposing is a different kind of private rented sector one that is built by larger mixed and commercial developers and professionally run, allowing flexibility for staircasing into ownership.
“There is a very definite ‘win-win’ opportunity here, if only the Government removes the barriers to the growth of institutional investment in the intermediate market and wider private rented sector.”
References: EGi News 22/08/06
