The British Property Federation (BPF) has called on the government to stimulate the private rented sector to help alleviate the housing crisis.
In a statement issued today, the trade body in response to yesterday’s ODPM select committee report on housing called for a solution centring on ‘key worker accommodation’ provided as part of a section 106 agreement.
It states: “The BPF favour an enlarged private rented sector (PRS), funded and managed by institutional investors. It would deliver high quality affordable housing to those in the intermediate housing market.”
“These include key workers and anyone unable to climb onto the property ladder whose earnings mean they are above the level necessary to qualify for social housing.”
It is critical of the government’s enthusiasm for shared ownership schemes, which it claims “subsidise an already over-inflated market.”
Ian Fletcher, the BPF’s commercial and residential director said: “Institutional investors would be keen to fund the key worker market based on future incomes without using subsidy.
“This change requires innovative thinking by the government and local authorities, but would serve to fill a massive affordability gap for those looking for quality accommodation who do not wish to buy.
“We need a more flexible approach to what constitutes affordable housing and this scheme would allow developers and investors to deliver high quality and well maintained affordable housing, responding to local needs.
“Broadening home ownership is a laudable long-term aspiration, but is not going to deliver the quantities of affordable housing needed in the short and medium term.
“We need to act now to think of creative solutions for all those in housing need. We believe a professionalised private rented sector can fill part of this hole.”
References: EGi News 21/06/06
