Housing and Planning Act
This is expected that to result in 200,000 new discounted starter homes.
The description of the houses that local councils are obliged to sell off in order to fund an extension of Right to Buy to housing association tenants was changed from “high value” to “higher value” houses. The Local Government Association (LGA) expects this will in practice mean more larger properties will be sold off. One concession made (in response to the National Housing Federation) was to allow it to be voluntary on housing associations whether or not they took up Right to Buy
The LGA had consistently warned that the loss of socially rented homes could increase homelessness and push more families into the expensive privately rented sector. As a result the government has conceded that every “higher value” council house sold should be balanced by the building of 1 new “affordable” home (or 2 in London).
However the LGA remained worried about the proposals for – for first time buyers aged between 23 and 40, available at a discount of 20% against “market value”. In many areas, homes to buy, even at a discount of 20%, would still be beyond the reach of most wage-earners. The situation is made worse because the more of these starter homes that are built, the fewer affordable rented homes will be provided. Moreover the Secretary of State will have powers to demand that such starter homes be built instead of affordable rented accomodation.
Impact analysis has shown that for every 100 of such starter homes that are built between 56 and 71 rented homes will not be built.
The House of Lords agreed two amendments – one restored the ability of councils to decide the proportion of starter homes vs affordable rented accomodation and the second would require buyers of starter home to repay the discouns they received, less 5% for every year of their occupancy.
However the House of Commons struck down both amendments. Councils now have a duty to starter homes except on “rural exception sites”. Buyers can now resell discounted starter homes after an 8-year period without any discount repayment.
Higher paid tenants must now pay at “market rents” based on their area. Rents will be increased up to that level at a rate of 15p in the pound over £31,000 (or £40,000 in London). This is called “Pay to Stay”. Some benefit recipients will be exempted.
New tenants will no longer have lifetime tenancies but 2-5 year tenancies lengthening to 10 years in case of disability or up to 19 years for temants with children up to 9 years old.
Councils can “pilot” brownfield land registers to be made available to developers. Planning permission for housing will be automatic on brownfield sites. Such planning permission will be limited to 5 years. Developers can choose to have the planning permission handled by a consultancy rather than a council.
The Bill received Royal Assent on 12th May 2016.