Firm Foundations – Analysis of Responses Valerie Strachan 22 April 2008

1. Firm Foundations – Analysis of Responses Valerie Strachan 22 April 2008

2. Response

3. Housing supply • Support to introduce a new build target • Will increased supply influence prices • Need for an affordable housing target • Mixed views on the strategic management of new supply • What should the target be? 35,000? • Top-down target or bottom up assessment of need • Distribution of target across the country • Delivered by regional partnerships – linked to housing markets

4. Housing supply • Concerns around the achievability of targets • Industry capacity • Infrastructure • Land banking • Complex s75 negotiations • Large parcels of land will be needed to meet the target • Preference for expanded communities • Role for new settlements in rural areas • Scope for private sector to deliver more affordable housing • S75 agreements to reduce/eliminate subsidy

5. Assisting first time buyers • Support for measures to support FTBs • Target resources where home ownership is sustainable • Support also needed for moving-on, re-entry and people with disabilities • Should not reduce commitment to increase social housing • Initiatives should be based on new supply of affordable housing • In particular shared equity • Recycle funding/retain properties for affordable housing

6. Assisting first time buyers • Very limited support for the £2,000 grant • Increase prices, without improving access to housing • Targeted grant/recoup funding on sale • Mixed views on new mortgage products • Assess whether these are needed • Improve affordability – • Longer terms • Longer fixed periods • Cheaper loans • Advice on home ownership • Tax incentives for home ownership

7. Private rented sector • Mixed views on increased PRS use for h’less households • Support from LAs – challenge of achieving 2012 h’less targets • Limited support from RSLs and tenant organisations • Housing quality • Repairing Standard • SHQS • Enforcement • Housing management • Registration and accreditation • Rent deposit schemes • Increased regulation

8. Private rented sector • Security of tenure • Extending tenure: flexibility versus security • Equity with h’less placed in social renting • Dispute resolution • Mediation: LA, expansion of the PRHP • Formal: tribunal, ombudsman • Affordability/sustainability of the tenure • Up-front costs • Housing Benefit gap • Higher rents → benefits trap

9. Private rented sector • Supply of appropriate PRS stock • Mixed views about potential to increase the stock • Suggestions covered • Financial measures: HB fast-track, rent guarantees, covering the rent/HB gap • Bringing empty properties back into use • Landlord leasing schemes • Housing support • Central government measures: abolition of the single room allowance, tax incentives

10. Social rented sector • RTB – strong support for modification of RTB rules • Calls to further restrict/abolish the RTB • New build – strong agreement that LAs should be enabled to develop • Based on local housing need, rather than borrowing capacity • Funding should be in addition to current provision • Only limited support for competition for develop’t funding • Instead – partnerships, cross-subsidy, review of rent regimes

11. Social rented sector • Mid-market rent was broadly supported – but • There were questions about demand • Funding should be additional to SRS funding • Strong support for sustainable mixed communities • Support for subsidy to non-RSLs • Particularly for subsidy to not-for-profits • Very limited support for subsidy for the private sector • Protection for tenants WILL be required • Security of tenure, rent levels, quality of housing and services

12. Social renting • Measures must be put in place to achieve the SHQS • Tension between • Ensuring tenants have decent housing and • Reluctance to “reward” poor authorities • Argued that much of the SHQS failures are not due to poor management • Inadequate LSVT settlements • Local circumstances • Funding should be linked to real improvements in stock condition being achieved • Should not be linked to the org’s general performance

13. Social housing • Strong support for the modernise regulatory framework • Proportional and tenant-focussed • Would like to see further streamlining resulting from the Single Regulator • But audit and regulation must be kept separate • Regulation must be used to continue to improve standards in the sector

14. Key themes • Need for more housing • Need for more affordable housing • Priority to be given to affordable rented housing • Should not assume that the private sector will deliver efficiencies • Measures needed to support those who can sustain home ownership • Willingness to consider new measures of delivering housing to people on low incomes • But clear that households should be protected

15. Discussion