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• Bigger, better housing proposed through new regulations
• Plans to ban “no fault evictions” to be published, better protecting tenants
• PM to say further radical reform needed to ensure safe, affordable homes for all
The Prime Minister will today urge new design standards to ensure high-quality homes, more social housing, and further tenant rights as part of an ongoing housing revolution.Addressing the Chartered Institute of Housing conference, she is also expected to set out next steps on the Social Housing Green Paper agenda, with an action plan expected in September. Her intervention comes as figures indicate that, by autumn, a million homes will have been added in under five years.In Manchester, the number of extra homes being created is up 12 per cent, in Nottingham by 43 per cent, and in Birmingham by 80 per cent. The number of affordable housing starts has also increased to nearly 54,000 this year.Welcoming these figures, the Prime Minister said:“This is a government with a bold vision for housing and a willingness to act on it.“A government that has delivered radical reforms for today, and the permanent structural changes that will continue to benefit the country for decades to come.”But she will also warn against complacency, saying:“The housing shortage in this country began not because of a blip lasting one year or one Parliament, but because not enough homes were built over many decades.“The very worst thing we could do would be to make the same mistake again.”Last year, more additional homes were delivered than in all but one of the previous 31 years.But the Prime Minister is clear the quality of housing must not be compromised by the drive to build more homes. She will call for new regulations to mandate developers to build higher-quality housing.Currently, some local authorities make Nationally Described Space Standards a condition of granting planning permission.But many do not - and even where standards are applied, they are not mandatory.The Prime Minister will say this has resulted in an uneven playing field, with different rules in different parts of the country, leaving “tenants and buyers facing a postcode lottery.”Mandatory regulations would be universal, and provide a clear, national standards - potentially leading to increased housebuilding.The Prime Minister will say:“I cannot defend a system in which owners and tenants are forced to accept tiny homes with inadequate storage…“Where developers feel the need to fill show homes with deceptively small furniture…“And where the lack of universal standards encourages a race to the bottom.”She will also confirm plans to end so-called “no-fault” evictions, with a consultation to be published shortly.The Prime Minister will announce the timetable for further action on the Social Housing Green Paper agenda, calling for more high-quality social housing, better tenant rights, and demanding landlords demonstrate how they have acted on concerns raised.Whilst admitting there is more to do, the Prime Minister will say reforms have made it easier to get homes built in the right places - including via the £5.5 billion housing infrastructure fund, and by giving local authorities greater freedom to use brownfield sites.Further progress made in the housing market includes:
• 80% of first time buyers taken out of stamp duty altogether
• £2 billion of extra funding into the Affordable Housing Programme to build homes for social rent
• Capped rent deposits and abolished letting fees, cutting the amount tenants have to find up front and making it harder to exploit house-hunters.
• Ending “no fault evictions” to stop landlords evicting tenants at short notice.
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As the saying goes "Cheap, quick, good. Pick two." She seems to be picking good and cheap so it won't be quick.
The extra £2 billion for social rent homes will not go very far - certainly not in London/SE where most people seem to prefer to live.
Background is that since early 1990s central Govt Cap Subsidy for new build social homes was cut from 75% to 14% - so currently the 86% shortfall needs funding via commercial borrowings at sector average 4.125% interest - so if there are borrowings of say £270k rent needs to be £1000 pcm to repay loan over the traditional 60 yrs in SRS.
To halve the borrowing/rent would then need a revised Cap Subsidy of 57% of total land/build cost - ie quadruple the current Cap Subsidy.
In the 35 yrs post WW2 - UK added some 5.5 million new Council homes at average 157000 pa. To do that again in SE (with social rents)would need a per unit subsidy close to £150k - so the promised £2 billion (?one off) would only build say 13000 odd new homes - whereas the former 157000 pa new builds would need an annual subsidy around £23.5 billion.
That would in effect almost double the current Housing Benefit bill - plus if we retain needs based tenancy allocation we can still expect the cheaper social rents to need funding by even more HB.
An immediate fix would of course be increasing LHA back to the 2008 50th percentile - thereby allowing poorer households to live where they choose (within reason and within the new LHA capping - but retaining the present circa £420 weekly cap for a max 4 bed property)
How much free land is around to cater for any major sustained social new build program?
Many LAs with "free land" would rather sell to a developer and use the cash to bolster their finances.
What are the rent levels on that group of 8 new builds?
Might be advertised on the local CBL site - with all the subsidies you mentioned they should go for a truly social rent of around £100 a week or less in your area.
In Surrey a 1950s built 2 bed Council flat will have rent around £130 weekly/£563 pcm - but a new build HA flat has rent £1000 pcm.
Pro rata your new development might have rent around £645 pcm - though LHA for Thanet is £535.68 pcm for a 2 bed so probably capped at that level.
Response from the National Housing Federation to today's announcement:The National Federation of Housing Spending Review submission to end the housing crisis suggests that the Government needs to invest £12.8bn each year for a decade to build the social homes our country needs.NatFed Housing Spending Review
So this will be the end of PD rights and Martin Skinners Inspired Homes 30m2 micro flat model?? Well done Teresa thats really going to solve the housing crisis!! When will politicians learn to stop interfering with free market and supply and demand. Do young first time buyers want and need cheaper homes at a cost of a smaller property? Answer Yes! If people did not want them they would not buy them!
Good Riddance to this useless clueless women, lets hope free marketeer Boris will recognise that the last thing housing needs is more regulation and taxation, it needs the permitted development laws maintained, relaxed planning laws like upward extensions that they promised and have now reneged on, lower development and property taxes and then we will see the houses getting built. Dear oh dear they really just dont get it do they!!