Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 1
1
The housing market in England has changed substantially since the last time there was political...
Conclusion
The housing market in England has changed substantially since the last time there was political consensus on the need to build large numbers of social housing. The decades in which social housing was delivered at scale featured different mechanisms than are used today—some of which might be revived and reused in modern circumstances—but ultimately the most important factor was shared political will. (Paragraph 16) Definitions of affordability
Government Response
Acknowledged
HM Government
Acknowledged
The Government does not a prescribe a definition of affordability, it is a complex and ever-changing picture that is better understood and monitored at a local level. However, we recognise that the fundamental purpose of social housing is to provide affordable, safe and secure homes to those who cannot afford to rent or buy through the open market. This purpose is reflected in the definition of affordable housing in the National Planning Policy Framework and in our approach to setting maximum rent levels in social housing. The vast majority of rented social housing in England is let at Social Rent using a formula that takes account of relative county earnings (among several other factors). In the case of Affordable Rent, the initial rent is capped at up to 80% of the equivalent market rent (except in London where both Social Rent and Affordable Rent levels tend to be lower). The Government continues to invest to deliver different types of rented social housing to meet the needs of a wide range of households including those at risk of homelessness in areas of the country where affordability is most pressured. By providing routes to develop social rented housing through both grant funding and the planning system, we aim to develop more social housing across the country. The increased costs of providing social housing in higher cost areas will always limit the types of property that will be available. Local authorities should refer to the National Planning Policy Framework definition of affordable housing when setting local policies that identify the levels and types of affordable housing that should be provided as part of development. Whilst this does not specify that rents should not exceed one third of household income the definition does set out that affordable housing should be for those whose needs are not met by the market.