93% of councils say Starter Homes won't help affordable housing needs

Just 7% of councils think that the Government's Starter Homes will help to address the need for affordable housing, and 80% don't believe they should be classified as affordable housing.

Related topics:  Finance News
Rozi Jones
1st March 2016
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The Town and Country Planning Association and Association for Public Sector Excellence also found that over two thirds of the 353 councils surveyed (69%) believe the government’s proposal to reduce social rents by 1% a year for the next four years has negatively impacted plans for new social and affordable housing. Only 3% said that they plan to build more social and affordable homes as a result.

96% described their need for more affordable housing as severe or moderate, and 89% of respondents think that the extension of Right to Buy will lead to less housing available for social rent, with only one council thinking that it would be beneficial.

Kate Henderson, chief executive of the TCPA, said:

“Low cost homeownership, such as starter homes, may help some people get a first step on the housing ladder, but as the survey of councils highlights this will not address the need for genuinely affordable homes. We need a housing strategy for the nation that provides decent homes for everyone in society, including those most in need in the current housing crisis.

“Our survey has revealed that four out of five councils do not think starter homes should be classified as affordable housing because they are simply not affordable for essential low-paid workers – whose employment underpins an economy on which we all depend – or for many people on average incomes.”

Paul O’Brien, chief executive of APSE, added:

“What is clear from these survey results is that the headlong rush to extend Right to Buy to housing associations is an ill-thought out measure which enjoys little support, and this is reflected across the different political parties at a local level.

“With nine out of 10 councils genuinely concerned that the extension of the Right to Buy to housing association tenants will further diminish the already short supply of socially-rented homes, available in their local communities, we say to government now is the right time to listen on Right to Buy.”

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