Plan to put affordable housing at heart of the recovery

The Affordable Housing Commission has launched a new report which outlines a 12 point plan to put social and affordable housing at the heart of the coronavirus recovery.

In the Making housing affordable after Covid-19 report, the group of housing leaders calls on the government to increase investment in much needed genuinely affordable homes, with funding targeted at social rented properties for low income households – many of whom are essential workers stuck in the more costly private rented sector.

The commission proposes a 12 point social housing-led recovery plan, which includes measures to: return housing grants to the previous levels which helped rescue the housing market after the global financial crisis, a new ‘Housing Conversion Fund’ for social landlords to buy unsold homes and other properties, reforms to the Right to Buy and Permitted Development Rights, caps on rent rises, strengthening the safety net for renters, and extending Help to Buy to existing properties for those on the margins of home ownership.

The report says that social housing must be at the core of the government’s recovery plans, especially at a time when housing need is at its greatest and when lending restrictions are being tightened for potential first-time buyers. It also warns that without urgent action the gap between housing need and the availability of low-cost housing will widen over the coming years, resulting in more households being pushed into the private rented sector. The commission forecasts that without a step change in supply, the affordable housing gap could widen by 500,000 over the next five years.  

Lord Richard Best, chair of the Affordable Housing Commission, said: “A recovery plan, with a focus on social rented and affordable housing, will encourage jobs and growth and rebalance the housing system so it is fit for purpose post Covid-19. As people face reduced incomes and potential unemployment the need for truly affordable social rented homes becomes even greater. With a weaker housing market and millions of renters under housing stress this is the moment for the social housing sector to step in, maintain the impetus for the construction industry and pick up the opportunities for growth. With decisive action from government now, there could be a big step forward in easing the affordable housing crisis."