Getting People into ownership
Craig Sanderson, Chief Executive, Link Group
Merron Simpson, Head of Policy, CIH
Increasing home ownership has become a central pillar of housing policy as the government trys to meet the public's aspirations.
Merron Simpson provided an overview of the current governments thinking and questioned the consensus that in excess of 90% of individuals want to own a home. For example, Merron drew on research from the Housing Corporation that found only 13% of housing association tenants want to own their own home.
Merron highlighted several initiatives that are currently being adopted in England and illustrated several institute suggestions including 'HomeSave' and from a CIH discussion paper 'A stake worth having'. This suggested that tenants could be given a percentage stake in the equity of their property for every year they pay their rent.
Merron also suggested that the government aims are misaligned if on the one hand they are trying to increase home ownership whilst at the same time reducing RTB discounts.
Craig Sanderson looked at previous initiatives, which had been targeted at increasing access to owner occupation including Co-Ownership, Shared Ownership. He also provided an overview of the 'Homestake' scheme.
In particular he highlighted the benefits of the aspiring low income owner occupier class being able to access a home at the right quality and at a price they can afford. This can help many organisations by develop sustainable mixed tenure developments.
Tentatively Craig worried that this push for home ownership might be a 'temptation too great'. Irresponsible lending could potentially lead to a bounce back of clients into the social sector if they can't meet the mortgage payments caused by increasing interest rates or a change in family circumstances.