Lifting the HRA borrowing cap should come with accounting changes
Theresa May’s announcement that borrowing caps on council housing investment will be removed was a big step in the right direction, and the issuing of draft regulations appears to confirm that the caps will be lifted at the end of this month. With reports of a Treasury fight-back, the concern was that restrictions could have […]
Why councils don’t use their borrowing capacity
Before parliament went off for its summer holidays, the housing minister Kit Malthouse said he was ‘at a loss’ to understand why councils don’t use their full borrowing capacity to build new homes. Always willing to help out a new minister, I’ll offer a quick guide to why this apparently lamentable situation has come about.
Encouraging messages, now Labour must work on the detail
Jeremy Corbyn launched Labour’s affordable housing green paper last Thursday, promising one million new homes over ten years of which a significant number would be for social rent. The ambition was clear: funding will be restored to the level when Labour last held office, and councils will once again become “major deliverers” of social housing. […]
Social rented housing is disappearing at a time we need it most
Building of new homes for letting at social rents has fallen to a trickle – just 5,380 in the last financial year. The past five years have seen just 50,290 built altogether, most of these financed by social landlords without grant aid. Theresa May has promised to revive social renting “in those parts of the […]
Good news for the sector but what will the rent settlement’s impact be?
The announcement that social rents will rise one per cent ahead of inflation for five years from 2020 has been widely welcomed. The most important aspect of the announcement is the timescale – a five-year settlement, with no further cuts in rents, offers the stability in their incomes that landlords need to plan their investment, […]
Councils and housing associations should define affordability together
If you work for a local authority or housing association, does it know whether its rents are affordable to those on low incomes, and if so how has it worked this out? Does it do its own assessment, or just rely on government guidelines? How will this change in future and what are the implications […]
Housing in Europe: How does Ireland compare?
Europe has become a continent of owner-occupiers. That might be the conclusion from looking at the article in this year’s UK Housing Review on the state of housing in Europe. But the real picture is more complex, revealing some interesting comparisons between Ireland and its EU neighbours. Whereas some time ago both Ireland and the […]
Missing millions
If tenants don’t exercise their right to buy, where will the money go, asks John Perry. Indications that only a small proportion of housing association tenants are likely to buy their homes once the scheme is rolled out begs a number of questions. What will happen to the money raised from selling higher-value council houses, […]
The council housing finance settlement is only four years old but it needs the kiss of life
When the majority of councils shouldered £13 billion of extra debt in April 2012 as the price for leaving the old council housing subsidy system, they were promised a settlement ‘intended to endure for the long term’. But the settlement has been undermined by policy changes since then and for many councils it threatens to […]
Justified criticism
“We are not talking about a ‘back of an envelope’ calculation – there is no envelope at all.” Thus spoke Meg Hillier MP, chair of the Public Accounts Committee (PAC), in introducing the recent report on the financing of the new Right to Buy. As a former journalist with Inside Housing, Ms Hillier knows her stuff, […]
John Perry lives in Masaya, Nicaragua where he works on