You are here: Home - Mortgages - Buy To Let - News -

Social housing sell-off ‘not the answer’ to housing crisis – Dromey

0
Written by:
21/08/2012
Think tank Policy Exchange has received a mixed response to its report, which calls for social housing to be sold and profits used to buy property for the same purpose in less expensive areas.

Housing minister Grant Shapps has indicated broad approval for the approach but shadow minister Jack Dromey has said that the proposal to sell off expensive social housing is not the answer to solve the housing crisis.

Dromey said: “With housebuilding collapsing under this out of touch Government, this report rightly highlights the need to build many more homes. But proposals to sell off homes let at affordable rents to hard working families are not the answer.

“Councils and housing associations should make effective use of their housing stock but the government should not force them to arbitrarily sell-off social homes, breaking-up mixed communities and driving out hard-working families on low wages from whole neighbourhoods.

“Rather than seeking to divert attention from the catastrophic failure of their housing policies, this out of touch Government needs a change of direction and an alternative plan for jobs, homes and growth.”

Dromey said the Government should start by taking urgent action with a bank bonus tax to fund 25,000 affordable homes to put unemployed building workers back to work, create jobs and apprenticeships for young people.

Policy Exchange’s report, Ending Expensive Social Tenancies claimed that sales of 28,500 properties would raise £4.5bn annually, which could be used to build 80,000 to 170,000 new social homes a year.

Policy Exchange claims the move could reduce the housing waiting list by up to 600,000 in five years.

However, David Orr, the National Housing Federation’s chief executive, said Policy Exchange’s idea was “fundamentally flawed”.

“It could effectively cleanse many towns of hard working people who simply can’t afford the high prices of buying or renting privately,” he warned.

“The report also ignores the fact that there is not the mortgage availability or market for people to buy these homes.”

Housing charity Shelter’s chief executive Campbell Robb said:

“There is a desperate shortage of affordable housing in this country, so we very much welcome contributions to the debate on how we can build the homes ordinary families so urgently need. However, this isn’t about numbers alone. We have to make sure that any new affordable housing is built where it’s needed most, and where the jobs are.”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2200044-terrace
Think tank calls for social housing sell off

Expensive social housing should be sold to fund new house building across the UK, the Policy Exchange think tank has...

Close