HOUSING associations in Wales should be given new freedom to borrow up to £100m to tackle the shortage of affordable homes, a report said yesterday.
A study commissioned by the Assembly Government warned the present target of 6,500 new homes for rent by 2011 fell short of the demand.
Former Labour IS and finance minister Sue Essex, who led the investigation into delivering the government pledge, said there was a lack of robust evidence about how many homes were needed.
The report said: “While the commitment to an additional 6,500 affordable homes between 2007-2011 is welcome, we think this is unlikely to be sufficient to fully address needs.”
An earlier study by the Joseph Rowntree Foundation warned parts of rural Wales risked losing a generation of young people because of a housing shortage, and rising costs. It found average house prices were more than five times the average income in rural areas.
Housing associations could raise about £100m more over the next three years if restrictions were lifted on borrowing against the £3.1bn value of their 74,000 properties.
The report produced 43 recommendations, including the need for “strong and sustained political support” to deliver affordable housing and go beyond the promised 6,500 houses. Close partnership was required between housing associations and local authorities.
The report also called for the creation of a new regulatory framework for housing associations, targets for all local authorities with a housing forum, and supportive grant aid from the Assembly Government. The minister should also take responsibility for performance.
Ms Essex said: “It is not just a matter of numbers, but making sure new housing is of the right type and quality, and is in the right place to meet local need and support local communities.”
Deputy housing minister Jocelyn Davies said: “Creating affordable housing is central to this Government’s aim of ensuring strong, sustainable communities throughout our nation.
“I’m grateful to Sue Essex and her team for producing this thorough report and I will consider the recommendations carefully as I map out what more needs to be done to meet the commitments in One Wales.”
The household population of Wales is expected to rise by almost 20% by 2026, and the number of single households by half. More than half of the extra demand will come in south east Wales, and 14% in North Wales.
This month the Assembly Government announced £5m for a mortgage rescue scheme to help struggling homeowners.
It could help up to 100 families by letting housing associations buy a share of their mortgages if they cannot keep up with repayments.
There was a 26% rise in the number of repossession orders made in Wales in the first three months of the year compared with the same period last year.
Nick Bennett, chief executive of Community Housing Cymru added: “We accept the challenges it poses, not only to the Welsh Assembly Government but to our members and other stakeholders including Local Government, but have to take that challenge if we are to meet the needs of communities across Wales in a time of great hardship for the sector.”
Source:
http://www.dailypost.co.uk/news/north-wales-news/2008/06/25/
millions-in-loans-needed-to-fight-homes-shortage-55578-21145308/
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