Labour plans to resurrect “equity stakes” for tenants in its bid to be re-elected next year.
The idea of granting social housing tenants a stake in their home where the state foots the bill was a manifesto pledge in 2001 but was shelved in March 2003 after it turned out to be too expensive.
However, discussions between the ODPM and Downing Street on the party’s five-year housing strategy, to be announced in the autumn, have centred on updated versions of the initiative.
The first is an “equity sharing” idea proposed by the Chartered Institute of Housing. Under the plan, social landlords would sell up to 90% of the value of a home to tenants and use the proceeds to fund decent homes work or development.
The second is “equity release”, which would concentrate more on private sector housing.
This would allow homeowners to unlock some of the value of their home through a cheap loan, possibly arranged by the government.
The latter scheme was initially intended to help supplement pension provision for older couples. But recently, it is understood, discussions have focused on using this money to help bring private housing up to the decent homes standard.
A source close to the discussions said: “Returning to equity stakes is definitely an idea that is being seriously considered – particularly as the Conservative party seems to be viewing homeownership and access to it as a potential vote-winner.”
Speaking at Labour’s policy forum last weekend, Tony Blair dropped a broad hint on the party’s current thinking. “We will publish a new strategy on housing, where so many young people have trouble buying their first home, and where in parts of the North housing lies derelict,” he said.
An ODPM spokesman said the department could not comment.
Source
Housing Today
No comments yet