National Housing Federation’s £1bn proposals under consideration

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by Lin Freestone

As housebuilders and developers grapple with the problem of thousands of unsold, empty properties, some of which are only part-built, the National Housing Federation is proposing that the government releases £1bn of public funding to ease the situation.

The National Housing Federation represents 1,300 not-for-profit housing associations in England.

Under the proposals, housing associations would buy up thousands of high quality, but currently unmarketable, privately-built homes at discounted rates in order to ensure plans for bringing on stream higher numbers of social housing can still be met, despite the current housing market problems.

The proposed package has been submitted to the government, the Housing Corporation and the Homes and Communities Agency.

It is suggested that the money already committed by ministers and housing associations to building new social homes over the next three years should be redistributed to allow housing associations to operate fair mortgage rescue schemes, and utilise developed and partially developed private sites that are currently sitting unused.

If the package is agreed, it would be a shot in the arm for the housing market. The purchase of at least 10,000 units would help the big housebuilders, whose share prices have collapsed over recent weeks due to concerns that they will be unable to service their debts.

The proposals could also help the government to reach its target to build three million new homes by 2020.

It has been pointed out, however, that the Housing Corporation insists that environmental standards in homes built by housing associations are higher than those stipulated in building regulations for private dwellings. Off-the-shelf developments do not meet these standards.