Mark Prisk to call on housing associations to meet private rental demand
Published by 24publishing for 24dash.com in Housing and also in Central Government, Communities, Local Government
Mark Prisk to call on housing association to meet private rental demand
In his first speech as the new housing minister Mark Prisk will call on social landlords to branch out to meet the demand for private rented homes - supporting calls made in the Montague Review.
Mr Prisk will deliver his first key note speech as housing minister tonight on the opening day of the National Housing Federation's (NHF) annual conference.
He will urge housing associations to turn their expertise in providing social homes to also building new homes for private rent.
He will call on landlords to bid for a share of a £10billion Government Guarantee scheme - which can be used to finance new development schemes - and “provide the spark to get Britain building”, delivering homes built for new tenants – whether in social homes or for private rent.
The Government also announced this month that it is providing £300m in capital funding to build 15,000 new affordable homes and bring 5,000 empty homes back into use.
A review of the private rented sector by Sir Adrian Montague highlighted real potential for the development of homes built specifically for private rent, with funding for these new properties coming from institutional investors.
In particular, the report said larger housing associations have the potential to become "key players" in the development of bespoke private rented schemes.
Speaking at the National Housing Federation conference in Birmingham, Mr Prisk will say that social landlords can make the most of the potential that Sir Adrian’s report identified.
The minister will point to Thames Valley Housing Association’s “Fizzy Living” scheme, which offers newly-built flats for rent on the open market in London’s East End, and will urge more landlords to “take that leap of faith”.
Mr Prisk will say: “There’s a tremendous opportunity here. We know there is already a massive demand for housing in the private rented sector. Housing associations already provide excellent services to their tenants, but have the potential to offer homes to a much wider group of people.
“By making the most of the new and positive measures we’re taking, social landlords can branch out and provide the spark to get Britain building.”
Labour's shadow housing minister Jack Dromey is also speaking at the conference today. He will reiterate that the country is "gripped by the biggest housing crisis in a generation and the longest double dip recession since the Second World War".
He will say: "The facts are stark. Housebuilding is down, homelessness is up, private rents have hit record highs and we have a mortgage market where people are struggling to get mortgages.
"We have seen Government scheme after Government scheme re-branded, re-packaged and re-press released. But nothing has stopped the remorseless deepening of the housing crisis leading to a 9% contraction of the construction industry, the single biggest reason for the double-dip recession.
"That’s why for Labour, homes, jobs and growth will lie at the heart of our recovery plan for Britain. That's why Labour Birmingham has pledged to build 70,000 homes. We will put housing centre-stage in a way it has not been for a generation.”