Extra Funding Required for Local Affordable Homes

Previously on my Stamford and Rutland property market blog I have written about a crisis in the supply of property (i.e. not enough property being built), but this time it’s the matter of affordability and the equilibrium of tenure (ownership vs rented) and therein, the affordability of housing. 

 

An efficient and effectual housing market is in everyone’s interests, including homeowners and landlords.

 

 

 

The requirement for the provision of subsidised housing has been recognised since Victorian times.  Even though private rents have not kept up with inflation since 2005 (meaning tenants are better off), it’s still a fact there are substantial numbers of low-income households in Stamford devoid of the money to allow them a decent standard of housing.

 Usually, property in the social housing sector has had rents set at around half the going market rate and affordable shared home ownership has been the main source of new affordable housing yet, irrespective of the tenure, the local authority is simply not coming up with the numbers required.  If the local authority isn’t building or finding these affordable homes, these Stamford tenants still need housing, and some tenants at the lower end of the market are falling foul of rogue landlords.  Not good news for tenants and the vast majority of law abiding and decent landlords who are tarnished by the actions of a few, especially as I believe everyone has the right to a safe and decent home.

 Be it the Tories, Labour, SNP, Lib Dems, Greens etc, everyone needs to put party politics aside and start building enough affordable homes. Even though 2017 was one of the best years for new home building in the last decade (217,000 home built in 2017) overall new home building has been in decline for many years from the heady days of the early 1970s, when an average of 350,000 new homes were being built a year.  

 We simply aren’t building enough ‘affordable’ homes in the area.  In fact, an average of only 163 ‘affordable homes’ per year have been built by South Kesteven District Council over the last 9 years.  The blame cannot all be placed at the feet of the local authority as council budgets nationally are 26% lower than they have been since 2010, according to 'Full-Fact'.

 An undersupply of affordable homes will artificially keep rents and property prices high. That might sound good in the short term, but a large proportion of my landlords find their children are also priced out of the local housing market. 

 

 Also, whilst your Stamford home might be slightly higher in value, due to this lack of supply of homes at the bottom end of the market, as most people move up the market when they do move, the one you want to buy will be priced even higher.  Problems at the lower end of the property market will affect the middle and upper parts.  It is all interlinked - it’s not called the ‘Property Ladder’ for nothing!