Affordable Housing Reform

Is Cameron’s affordable housing reform simply a recycling of Margret Thatcher’s “Right to Buy” or actually something helpful to property developers?

As Architects Journal reported this morning, David Cameron has today announced reforms to the affordable housing quota system at the Conservative Party Conference. Developers are to have the option of providing starter homes to be sold at a discounted value rather than the Affordable Housing quota.

It is clear that the government is making a commitment towards starter homes and helping 20-30 year olds to buy their own home. However many, including the charity Shelter, question how far this move will actually address the housing crisis or indeed help smaller developers.

Currently affordable housing is defined as available at 20 per cent below the market rent and it would seem Cameron’s idea is to make these homes available to buy. However in August Shelter reported that 58% of families would not be able to afford ‘starter homes’ Is not the rock of the crisis a lack of viable finance options both for building houses and buying them ?

Without doubt developers will be delighted not to have to contribute to affordable housing but what shape will the new proposal take? Currently the affordable contribution has to be paid in advance of building. Hence the developers contribution (in the form of the discounted sale price) would come out of the profit rather than upfront and logically should (interesting word) increase liquidity and be good for the market.

No doubt we will see in the coming weeks, months the detail of this reform and its effect on the property market. In the meantime, Luke Jooste, head of real estate finance at Funding Circle takes the view,

“All of the political parties have failed to address a major issue holding back housebuilding: a lack of finance for small developers, who are the bedrock of a healthy market. To meet demand, Britain needs to get finance to more small developers, whose market share has fallen from two-thirds in 1988 to just over a quarter in 2013.”

Architects Journal read the full article http://www.architectsjournal.co.uk/newsletter/news/cameron-set-to-scrap-affordable-homes-quotas/8690023.article?WT.tsrc=email&WT.mc_id=Newsletter275

If you a developer needing help with more creative funding solutions talk to us Development Advances

T01202 656 100 E. enquiries@developemtadvances.co.uk

Moving Mountains not Goal Posts

Networking Event 25th June Lunch Club

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Don’t miss out on a chance to make new connections

Come to our networking event

June 25th Lunch Club, The networking event for the property market

Networking: Want to meet new people ? Strengthen existing relationships ?

If you are in the property market in Dorset then our networking event is a the place to make connections. Anyone who is anyone in property will be there. See below what attendees say. In March we had 7 developer builder companies attending. Who else goes ?

Accountants Architects, Contractors, Estate Agents, Finance Professionals , Recruitment Consultants, Solicitors, Surveyors, Town Planners, and other local providers of business services

Here’s what attendees say:

“Myself and my colleague Steve attended the lunch club event in November 2014. Not only did we enjoy the event and property related presentation but we made useful connections. Indeed I met a person at the event with whom I have subsequently done business.”
Paul Williams, Martin & Co.

“I go to lots of networking events and it is hard to quantify what business is actually from an event. However if you are in property this event is a must. All the main players are there on a regular basis.”
Stewart Homer, Homer and Pardy Developments Ltd