The House of Lords’ Built Environment Committee has published its report into ‘Meeting housing demand’ which concludes that “the Government must address barriers to building much needed new homes”. It says that too many people currently live in expensive, unsuitable and poor-quality homes and housing supply needs to be increased to tackle the housing crisis now.
The Committee acknowledges that building more homes will not address affordability pressures in the short term but says it is an essential first step to ensure that demand can be met in the long term. It notes that it heard that meeting future housing demand will require more homes of all kinds.
The Committee heard that the Government’s target of 300,000 new homes per year and one million new homes by 2024 may not be enough to address future trends and raises concerns that these targets will not be met if the barriers to building new homes are not addressed.
Key conclusions and recommendations of interest include:
• The role of SMEs in the housebuilding industry has collapsed. SMEs should be supported by reducing planning risk, making more small sites available, and increasing access to finance.
• The population is ageing and by 2050 one in four people in the UK will be over 65. The country needs more specialist and mainstream housing suitable for the elderly.
• Uncertainty and delays to planning reforms have had a ‘chilling effect’ on housebuilding and created uncertainty for housebuilders and planners. The Government needs to set out its strategy for the planning system. This should include clear proposals on local plans, infrastructure funding and land availability. In light of half of local authorities not having up to date plans, the Committee says that the barriers to plan making must be addressed. It supports the Government’s proposals to get all authorities to make local plans within 30 months of any new legislation. It also says that planning departments need more resource to avert an emerging staffing crisis.
• Government must change its approach to spending on housing. Over time the money spent on housing benefit should be invested in increasing the social housing stock. Right to Buy schemes are not good value for money: increasing the housing supply would be a more effective use of funding.
• On Help to Buy, the Committee finds that the scheme, which will have cost around £29 billion in cash terms by 2023, inflates prices by more than its subsidy value in areas where it is needed the most. It notes recent changes to the programme but says that this funding would be better spent on increasing housing supply.
The Committee also highlights the importance of addressing the skills shortages in the construction and planning sectors.
Within the report it references Rentplus’ evidence submission (p26):
“We heard that the high costs of housing in the private rented sector inhibit people from saving the deposit necessary to move into home ownership. Given that average deposits are £59,000, “saving for a deposit is impossible for many renters on lower incomes”, especially as research before the COVID-19 pandemic showed that 45% of private renters in England did not have enough savings to pay their rent for more than a month if they lost their job.”
The full report is available here.
In a first for Huntingdonshire, affordable rent to buy is coming to Alconbury Weald, on the former RAF Alconbury site.
Huntingdonshire District Council is working with Rentplus, the leading provider of affordable rent to buy homes, to offer 22 affordable rent to buy homes to give people who are living in or working in the area the chance to get on the housing ladder without the need for an upfront deposit.
Banks and building societies are demanding ever higher deposits to secure mortgages, which remains unaffordable for many. According to Zoopla, the average price for property in Huntingdon stood at £316,552 in October 2021 and 2 bed terraced houses £218,076. First time buyers would need an income of over £50,000 to secure a standard 90% mortgage for the terraced house, and to have saved the 10% deposit most building societies demand – nearly £22,000 + fees – leaving many local residents, particularly key and essential workers on lower incomes, unable to buy their own home.
The Rentplus scheme allows for prospective buyers to move into a brand new home without the need for a deposit.
Tenants rent their home for five to 20 years at an affordable rate whilst using that time to save towards their future mortgage deposit and build a good credit rating. They pay their rent to a Housing Association and their rent includes all repairs to the property.
At the end of the agreed term, they have the opportunity to purchase 100% of their home, at which point, Rentplus gifts them 10% of the purchase price towards their savings.
The 22 attractive new build homes are part of the new Urban and Civic site and comprise 8 x 1 bed flats, 11 x 2 bed flats and 3 coach houses and are available now. Aspiring homeowners looking for rent-to-buy must be either be living or working in the area or in education/training with local links to Alconbury and the surrounding area.
Executive Leader of Huntingdonshire District Council, Cllr Ryan Fuller, said: “We are very pleased that this development has come to fruition through careful planning and policymaking. We are consistently looking to develop more affordable homes for existing and future residents of Huntingdonshire to meet the requirements of our residents.
“We are continuing the momentum of two successful years in terms of delivering affordable homes across Huntingdonshire, and an initiative like this is another example of what we are trying to achieve to meet the housing needs of our residents.
Steven Collins, CEO at Rentplus, said: “Affordability is an issue across the country, and we are pleased to be able to offer this affordable rent to buy option and remove the deposit barrier to make dreams become a reality for people in Huntingdonshire.
“These much needed new homes will make a vital contribution to helping the area’s working families onto an affordable pathway to homeownership without the need for the upfront deposit.”
They are all completed and ready to be allocated.
More information at https://www.home-link.org.uk/choice/ or by visiting www.rentplus-uk.com or register your interest by emailing [email protected].
This year Rentplus is making a donation to SSAFA, the armed forces charity, instead of sending out Christmas cards.
The donation will go to their emergency relief fund, supporting service families in a time of crisis: anything from helping to provide food vouchers, supporting with debt and rent arrears, helping with the purchase of essential household items like fridges or washing machines or helping with household bills. https://vimeo.com/655418452/38a506954f
In previous years, Rentplus has supported charities include Shelter, the Giving Tree and Macmillan.
To drive meaningful change in 2022 and beyond, government support for affordable housing tenures should be backed up by clear guidance that encourages local authorities to welcome institutional investment in their affordable housing provision and to consider innovative models. There needs to be a framework to which providers can refer to confirm that there is national-level support for accepting institutional investment, instilling confidence to accept alternative provisions outside of government grants. In turn, this enables local authorities to focus grant funding on the delivery of new homes for social rent.
With housing costs continuing to soar and the affordability gap continuing to widen, 2022 must be the year when alternative homeownership schemes can play their part. By welcoming and taking a clear position on privately funded schemes, the government can enable the scaled-up delivery of additional affordable homes to those that need them most at no cost to the taxpayer.
Read what chief executive Steve Collins had to say in the Property Reporter Look Ahead for 2022.
Rentplus Programme Manager, Julie Abbey-Taylor is changing roles in the organisation.
Julie joined Rentplus in 2020 as Programme Manager. With 35 years’ experience of working in the social housing sector, covering homelessness, allocations, housing management, sheltered and supported housing roles, and as a Chartered Member of the Institute of Housing, Julie has worked for five local authorities, a national charity and a housing association. For the past 14 years her work has focused on the strategic housing and delivery role and she has a wealth of experience in delivering through S106 agreements. Her previous post was as Strategic Housing Team Manager for two councils in Suffolk.
Steve Collins, Rentplus Chief Executive, welcomed her to her new role. “Julie has made a significant difference to the Rentplus team and her considerable experience across social housing and in housing allocations in local authorities, will stand her in good stead in her new role as Area Director for the East of England.
“Rentplus is growing at a considerable rate across the country. Our award winning affordable rent to buy model has been proven with the sale of the first Rentplus homes this summer to tenants who moved in – with no deposit – back in 2016. Now, five years later, they are buying 100% of their home, helped by a gifted 10% deposit from Rentplus.
“We already have a presence in the East of England and Julie will help us extend our reach further into the region, giving local people the chance to own their own home.
“She will be working closely with John Walton, our Regional Director for the East of England to bring new schemes to fruition, enabling more of our key workers and other lower and middle income families into homeownership.”
Julie added: “The East of England has an ambitious growth strategy and Rentplus supports the delivery of this. We know that if we are developing new jobs and key industries in the region, we have to provide a way for people to be able to afford to live in the area and not to have to move away in order to live close to their work.
“Having a stake in affordable housing delivery is key for me personally and for everyone at Rentplus, and I look forward to expanding our portfolio in the East.”
You can contact Julie on 0330 229 0035 or email her on [email protected]
“The recalcitrance of some LAs is preventing local people from becoming homeowners, trapping many in the spiralling cost of private rental which can severely limit their chance of raising a deposit.” Rentplus is working with innovative LAs turning renters into homeowners.
Read what Rentplus CEO Steve Collins said to React News.
2021 11 sc Don’t just back BTR big beasts if we’re to build the homes we need – React News
Key and essential workers, and other low and middle income earners have the chance to get on the housing ladder without the need for huge upfront deposits, thanks to new affordable rent to buy properties now available in Derbyshire for the first time.
Rentplus-UK Ltd and Bolsover District Council are working in partnership to offer affordable rent to buy properties at Cavendish Park, Oxcroft Lane, Bolsover. The developer is Jones Homes. Bolsover is home to an elegant 17th Century castle which presents breath-taking views over the Derbyshire countryside. This popular town hosts a good selection of pubs and independent shops and just 6 miles away is the friendly town of Chesterfield and with the M1 right on the doorstep, Cavendish Park has it all.
Residents move into a brand new home without having to pay any initial deposit, and pay an affordable rent for the duration of their lease. Leases run for a minimum of 5 years and up to 20 years, giving residents time to clear debts and save towards a deposit. At year 5 and at key points during their lease, residents have the opportunity to purchase the property: at this point, Rentplus will gift them 10% of the purchase price – approximately £20,000 – towards their savings for their mortgage deposit.
The new partnership offers an affordable pathway to homeownership for working families on low or middle incomes. It benefits those unable to save the large deposits required to access other types of housing, including shared ownership and Help to Buy which need 5-10% deposits often amounting to £15,000-£30,000 plus fees.
The scheme is the first time that Rentplus has worked with Bolsover District Council and house builder, Jones Homes. For Rentplus, the partnership marks another big step in the journey to deliver its award-winning affordable rent-to-buy homes in every English county.
Rentplus is funded by institutional investors, providing affordable rent-to-buy homes with no grant or public subsidy. Properties are usually managed by local housing associations, the local authority, or Rentplus Homes, a subsidiary of Rentplus-UK. Partners benefit from having an extended tenure offer and increased rental income from the homes.
Applicants should be registered on Bolsover Homes, the Bolsover Housing Choice Based Lettings scheme. They must have an annual household income of less than £80,000 and must be in employment, or in education/training and currently unable to save for a deposit.
A financial assessment will be carried out before ascertaining whether an applicant will be appropriate for a 5, 10, 15 or 20 year purchase plan. One of the benefits to Rentplus is that poor historic credit is by no means a barrier to acceptance as tenants have a minimum of five years to be able to rebuild their credit history.
Rentplus-UK is seeking a dynamic Area Director for the North East of England to help it deliver its ambitious affordable rent to buy proposition in the region.
You’ll have a passion for social housing, enjoy great contacts across the North East, and be fully committed to making the home ownership dreams of families turn to reality. In addition, you’ll possess excellent communication skills and the ability to distil complex messaging concisely. As well as having strong negotiating skills. you’ll be able to source opportunities, write persuasive bid documents and close great deals as part of a team.
Job Description for the role is available here.
CVs and a short covering letter should be sent to [email protected].
Closing date: 17.00hrs Monday 22 November 2021
Steve Collins, Rentplus Chief Executive, welcomed her to the team, saying “Liz is a highly experienced and qualified land, development and construction expert with over 30 years’ experience within the housebuilding and social housing sectors.
“She joins Rentplus at a very exciting time in its growth. We have seen the Rentplus model come full circle this year with the first sales of Rentplus homes to tenants who moved in with no deposit and now, five years later, with a gifted 10% deposit have purchased 100% of their home.
“Liz will be working closely with Robin Falle, our Regional Director for the West of England to bring new schemes to fruition, enabling more of our key workers and other lower and middle income families into homeownership. Her skills will complement the growing team and she will be a real asset to Rentplus.”
An expert in every aspect of the housebuilding construction process from inception through to delivery and asset management, Liz is passionate about the best housing provision being essential to sustainable communities and believes they provide a driver for social economic growth, resilience and sustainability.
She added: “I’m excited to join Rentplus as I believe that my experience to date combined with my passion for housing and the environment is a great match and I am excited to create opportunities for people to buy their own home across the midlands.
“To me, Rentplus enables social mobility and forms an exciting opportunity to use diversification to facilitate more home ownership thus unblocking housing waiting lists. I’m truly dedicated to the housing industry and the people we house. I’m delighted to have joined Rentplus and very excited about making a difference.”
In response to the Autumn budget today (27 October 2021), Steve Collins, CEO of affordable housing provider Rentplus-UK said:
“Any new investment in housing is to be welcomed but the current funding is still well short of what is needed to provide the affordable housing required to meet demand. Given the Chancellor’s wish to control spending, the only way to deliver the number of new affordable homes needed is through a significant injection of institutional funding. Privately funded housing providers are already stepping in to fill this gap but there is the potential for many more billions to be invested
“Homes England and the National Housing Federation have called for more institutional investment in the social housing sector. This must be supported by the Government being clearer on its support for alternative tenures to Help-to-Buy and Shared Ownership. Innovative programmes such as affordable rent to buy are not only already adding to the supply of affordable housing but are also widening access to homeownership to those on lower incomes. These and other schemes are ready to be scaled up with the encouragement of government and all at no cost to the taxpayer.”