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Report calls for more
affordable housing as 1st time buyer figures remain static
THE number of 1st time buyers is
static demonstrating the need for more holistic housing policy according to
a new report.
As the housing crisis continues, 1st time buyer figures highlighted in
the UK Housing Review, has now been published, on Monday, 14 March 2016, by the Chartered
Institute of Housing (CIH) reveal the significant need for government to
focus housing policy and investment on a rented offer for households for
whom home ownership is out of reach.
Figures highlight that government is investing a total of £42 billion in the
private market, with only £18 billion spent on affordable rented housing;
just 30% of the total investment in housing.
The effect of the government's switch in priorities since last autumn's
Spending Review means that investment in affordable renting will fall to its
lowest levels since the 2nd World War.
Of the government's target for new homes to be built by 2020, only 12% will
be affordable rented homes.
CIH research shows a fall in the number of affordable homes for rent over
time and, analysis suggests that by 2020 there will be a 9% loss in both
council and housing association properties let at social rents, equating to
the loss of over 350,000 social rented homes altogether if further
investment is not made.
With house prices once again approaching there 2007 peak in many areas, and
well above them in some others, 1st time buyer numbers have remained the
same for the last 2 years.
Whereas 15 years ago, there were over 500,000 1st time buyers each year.
However, in 2015 this had dropped to only around 300,000 new 1st time
buyers, despite the significant amount of government support for home
ownership, reflecting the disproportionate rise in house prices compared to
growth in average incomes.
Terrie Alafat, Chief Executive of the Chartered Institute of Housing, said:-
"The cost of housing means that millions of people are struggling to
access a decent home at a price they can afford despite new government
schemes to support home ownership.
We need housing policy for the 25% to 30% of the population who will never be
able to afford to buy a home of their own.
We know the government is committed to increasing the supply of new homes,
something CIH welcomes and supports, but it looks like support for any kind
of affordable rent is going to fall to very low levels at a time when there
is an increasing need for this kind of housing.
It's essential that support for home ownership isn't expanded to the
detriment of those who cannot buy, even with support." |
