In his Summer Budget Chancellor George Osborne announced some pretty seismic changes for social housing.
Addressing the House of Commons in the first Conservative-only budget since 1996, the Chancellor revealed that from next year social housing rents will fall by 1% per year for the next four years, while for those people on higher
salaries rents will rise. So-called ‘high earners’, on salaries of £30,000 will pay market rents for their properties.

The Budget announcements follow a turbulent few years for the social housing sector with the controversial bedroom tax, introduced in 2013, presenting challenges.

“These are uncertain times for social landlords and the changes announced in the budget could have an impact on their ability to invest in their stock and build new homes,” says Councillor Frank Hont, Liverpool’s cabinet member for housing. “This is in addition to the welfare changes and the bedroom tax which are squeezing tenants already struggling to get by. We will continue to work alongside our social housing providers to help them rise to
the challenge, keep providing good quality, affordable housing and play an important role in improving our communities.”

However, housing associations and providers across the region have vowed to stay committed to the cause of ensuring tenants and prospective buyers of affordable homes are put first.

“In light of the Budget, the social housing sector has reacted with concern about the potential impact of the changes
announced,” says Jennifer Bailey, sales and new business negotiator, Riverside Home Ownership.

“But despite the challenges that lie ahead, it is imperative that housing associations continue the important work of providing affordable housing solutions. We must react by expanding our role to extend beyond providing support to those who rent but also to people who aspire to own their own home. Shared Ownership bridges the gap between renting and buying and provides an alternative affordable solution for people who may otherwise qualify for social housing. By buying a share of a property, and paying reduced rent on the remainder, shared ownership allows people to access the market in an affordable and flexible way.”

Indeed, Shared Ownership and the ever popular Help to Buy scheme are designed to help those borrowers who otherwise would not be able to afford home ownership and both are within reach for many social housing tenants.

“Shared Ownership allows buyers to purchase shares for as low as 25% and means they only need a small mortgage and deposit,” says Sandy Kelly, head of Help to Buy North West. “This is a great way to get started as it allows the option to buy additional shares in the future and potentially increase to 100% ownership.

“The Help to Buy equity loan scheme is also extremely popular, allowing purchasers to buy a new home with just a 5%
deposit, 75% mortgage and a 20% equity loan from the government. There are over 200 developers offering Help to Buy
in the North West, and as the Help to Buy agent for the region Plus Dane has helped over 5,000 people into home ownership since the scheme began in 2013.”

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