Islington Council has told housing associations it will not support bids for development funding under the government’s affordable rent programme.
The authority is the first in London to rule out allowing associations to let homes at up to 80 per cent of the market rent. Instead it expects new housing to be developed without Homes and Communities Agency money and let at traditional social rent levels.
A document from the council seen by Inside Housing states: ‘Islington considers that the affordable rent product is not affordable for households to whom we owe a housing duty.’
The Labour-run council will ask housing associations to develop social rented housing, with the authority granting them land and around £1 million of the £3.7 million it expects to receive under the new homes bonus.
James Murray, cabinet member for housing, said: ‘While we are being outspoken and robust we are making it clear we are going to give something back in return in terms of land and capital. We realise this is a demand outside the main programme.’
Mr Murray said the council had identified enough land to provide 510 homes, with the potential to provide several hundred more.
Several Labour councils in London, including Hackney and Waltham Forest, have indicated they want family-sized homes to be let at significantly less than 80 per cent rents.
Steve Douglas, partner at consultancy Altair, said: ‘This could be the first big stand-off between a local authority and the HCA and government over policy. Housing associations could get caught in the potential crossfire.’
A total of 29 housing associations currently operate in Islington, including Family Mosaic, which has more than 2,000 homes in the borough.
‘We have been aware of their [the council’s] stance, initially I was worried that they were digging their heels in and would end up with no grant’, said Brendan Sarsfield, chief executive of Family Mosaic.
‘But now it seems they have thought it through. If they are coming up with other solutions to help us deliver homes we will be happy to talk.’
Thank goodness, a dose of reality. Presumably the new model intended to see-off entirely the social rented sector, thus Islington's support for impoverished households putting the Borough in a precarious position.
ReplyDeleteHow much better are the Housing Associations-not much I would argue, an even less efficient system than direct public control. Like other organisations they have their good points, I met a couple of community engagement officers for HA's who were very active but with little managerial and financial support from further up the chain.
What is wrong with publicly owned housing stock, 'safe as houses' is the saying not, 'safe as short term equity finance'.
Time for Local Authority Housing Companies on a proper scale, with hypothecated earnings and delivery of high standard housing.
To all those Tories out there, what is more morally important, that people have a decent house or that you have someone to despise.