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Tuesday, 11 June 2013

Is it the Death of build for Social Rent Housing by Housing Associations?

That is an important question.

The disappearance of grant funding for social rent homes, and indeed virtual disappearance of and grant funding for builds of any nature (or at least released/ deliverable grants) raises whether the death of building social rent modelled homes has arrived?

The model that is workable just, is Market rent homes, a new model for a lot of social landlords , involving new tenancy agreements, different letting criteria , and different allocations methods (the last two ARENT the same item)

The Market Rent model CAN fill a hole in available homes , if builds occur.

Filling a need for homes.... but wait ...

But does this mean that the financial ability of building social rent homes has virtually vanished if indeed not vanished entirely?

No , not necessarily.

Within development possibilities that shouldnt be ignored , are risky, but buy to sell at profit.

That is where the niche for building more social rent modelled homes will arise.

Build/ sell at profit, then reinvest in build of social rent modelled homes.

This will bridge some of the funding restrictions, especially if the Association has development allowance/ funds in the first place, which most if not all do. The investment model for build to sell is vastly different than social modelled builds, and this could be a very valid funding generator.

This will allow initial non grant assisted funds to multiply, and then put back more into the pot for the social modelled builds.

I wonder if people will see this as a very valid route to compensate , in part for this dirth/ vanishing of grant assisted funding?

We shall see eh?



4 comments:

  1. Good thought provoking piece, we all know social housing needs to be built and the rents fixed to disallow private landlords to capitalise!! Affordable rents which are capped.

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  2. there are so many boarded up houses that could be renovated at less cost than building new. many tenants would even renovate themselves for reduced rent. it's such a waste.
    nice post.

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