Spotlight: Investing to

solve the housing crisis

Investing to solve the housing crisis
Investing to solve the housing crisis

27 November 2017, by Savills Research

The impact of grant funding should be judged on how well it solves the full range of local housing issues, including affordability, quality and undersupply

■ Nearly 100,000 households are in need of sub-market housing each year. The incomes of these households, and therefore the housing they can afford, vary hugely. Housing policy should allow tenure flexibility to reflect local housing needs and ensure value for money from grant.

 

■ Against this need we have delivered an average of 45,000 submarket homes annually since 2013. 93% of the shortfall is in London and the South, whilst affordable delivery gets close to meeting need in the North and Midlands.

■ It would take £7bn each year to provide social rented homes to all of those in need of sub-market housing. In the most expensive parts of the country this could offer a significant benefit saving compared to housing these households in market rented homes, because social rent is at such a discount.

■ Instead of just aiming to build the maximum number of homes, funding packages should give housing associations the opportunity to tackle local housing issues. This may be addressing housing quality in areas where affordability is less of a constraint.

■ For most housing associations, the profit generated through market sale is equivalent to less than 20% of their total surplus, but for some this rises to over 60%. Yet only 24% of board members told us a market downturn was a risk to them delivering more homes in our June 2017 survey.

Articles from Spotlight: Investing to solve the housing crisis – 2017

Doing more with less

27 November 2017

Doing more with less

Maximising value for money means using housing funding flexibly to help deliver the right homes in the right places, regardless of tenure

Flexible funding to meet local needs

The market can’t and won’t solve the growing problem of priced-out households. If subsidies are going to take the strain, they should be administered in a more flexible and targeted way

Understanding market risk

27 November 2017

Understanding market risk

A housing market downturn remains low on the risk radar of many housing associations, despite their increasing focus on developing homes for market sale

 
 

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