"London Councils laud new housing package as highly beneficial"
In the Autumn Budget 2022, Chancellor Rachel Reeves announced several measures aimed at addressing homelessness and increasing affordable housing in London.
The Chancellor proposed a review of the existing debt settlement for Housing Revenue Accounts, advocating for a 10-year settlement in the forthcoming consultation. This move is seen as a positive step towards providing more certainty for social housing providers.
To boost housebuilding, an additional £500m funding was added to the Affordable Homes Programme. This funding is intended to help local authorities tackle the current homelessness crisis in the capital city.
One of the key announcements was an increase in funding by £233 million for homelessness services. This funding uplift is expected to stabilise the homelessness system and reduce the number of families, including children, living in temporary accommodation.
Cllr Grace Williams, London Councils' Executive Member for Housing & Regeneration, hailed these announcements as "hugely welcome news." She stated that London's homelessness emergency poses a significant threat to council finances in the capital.
The government is also proposing changes to Right to Buy and housing stock preservation. Measures include increasing eligibility requirements, reforming discounts rules, exempting new social housing from sale for 35 years, and extending councils’ rights in property resale. These safeguards aim to prevent loss of affordable homes in London’s social housing sector.
Social rent level is set to rise by CPI+1% for five years, providing more certainty for social housing providers. Additionally, the government consulted and decided to implement a Social Rent convergence mechanism in the 10-year rent settlement to allow rents below formula levels to increase gradually, supporting investment in social housing supply and quality.
The announcements are considered to be a significant help in addressing the homelessness emergency in the capital city. According to figures from a Financial Times analysis, one in every 200 households in the UK is experiencing homelessness, and London faces a black hole of £700m in their social housing budgets over the next four years due to the costs of maintenance, repairs, and vital safety improvements outpacing boroughs' rental income.
In summary, the Autumn Budget of 2022 set the stage for subsequent policies and funding boosts aimed at reducing homelessness and increasing affordable housing availability in London. The measures announced collectively represent substantial progress towards addressing homelessness and affordable housing challenges in London.
Businesses in the housing sector may find new opportunities due to the Chancellor's proposal to review the debt settlement for Housing Revenue Accounts, as this could provide more certainty for social housing providers who are key players in the housing market.
The government's proposed changes in Right to Buy and housing stock preservation, such as increasing eligibility requirements and exempting new social housing from sale for 35 years, could potentially stimulate the finance sector by reducing the loss of affordable homes in London’s social housing sector, leading to increased investments in housing regeneration.
