Reforms to encourage more investment in social housing
Moves to encourage more private investment in social housing have been announced by Ministers.
Housing minister Grant Shapps and economic secretary Chloe Smith have published a consultation seeking views on how to encourage more private investment into the social housing sector through Real Estate Investment Trusts (REITs) – vehicles for those wishing to invest in property.
The current Finance Bill is introducing a series of measures to support entry to and investment in REITs. This consultation will build on these measures considering potential further changes to REITs to support the establishment of more of these in the social housing sector.
The consultation follows the successful Affordable Homes Programme, which levered in private funding from providers of almost £10 billion, and which is set to exceed expectations and deliver 170,000 homes – 20,000 more than originally thought.
Housing minister Grant Shapps said: “I am determined that we do all we can to get Britain building, and these reforms will help build more affordable homes, boost investment in housing and increase choice for tenants.
“That’s why we’re launching today’s consultation, to see how we can best break down the barriers that prevents private investment in social housing – with the turnover from housing associations now at over £12 billion this should be seen as a sound and stable investment to those looking for a long-term return.”