In the Transforming Public Procurement Green Paper, the Government signalled its desire to increase its control over procurements by all contracting authorities.
It seems to me many “new” housing initiatives are refinements of previous initiatives.
Looking at the Conservative’s latest proposal about shared ownership right to buy, where tenants have the right to purchase a 10% stake, concerns from associations about the impact that might have on their funding ability are well placed, given how funders currently treat shared ownership.
Housing associations are about housing those who are in the most housing need; if, given the stable home housing associations can provide, over time tenants have enough income to raise a mortgage, there are plenty of government initiatives to help them get on the housing ladder.
From my extensive experience of voluntary right to buy (VRTB), for many tenants raising a mortgage is going to be a struggle; so, in practice there are likely to be few takers. And for those who do take up the opportunity, they are likely to be “locked in” to their shared ownership lease, unable to increase their stake.
Given that locking in, assumptions lenders currently make about the numbers of shared owners who will staircase out would need to change, and I would hope with it would be their view on how much could be lent against the property. In a way, this is the creation of a new form of intermediate tenure.
For associations there will also be the challenge of improving the market for shared ownership resales (some might say though, that is long overdue). What would be disappointing is for these new shared owners to find they could only leave their homes by co-ordinating their sale with someone willing to purchase 100% of the property; resulting in a loss of much needed social housing.
If the aim of the policy is for tenants to have access to the wealth creation that traditionally has been home ownership, let’s blow the dust off equity stakes; remember the CIH’s “Homesave”? It isn’t about the mantra of homeownership; it is about sharing wealth creation opportunities with those who now have little chance of doing so.
For more information
Please contact Jonathan Cox.
The monthly round-up from the Anthony Collins Solicitors charities team.
Legal updates as the UK enters into stage 4 of the roadmap and legal restrictions on face coverings and social distancing are lifted.
The first disability we are going to discuss is diabetes. We begin by discussing the different types of diabetes; their similarities and differences and how we live with the disability within our day.
Tim Coolican and Freya Cassia explore the legal and practical options available to providers if a disappointing result is received following an inspection.
Following the launch of the CQC’s new strategy for how it regulates health and social care, many providers will be keen to know more about how the changes might affect them in the future.
EPC’s are not required to be served with a Section 21 notice for assured shorthold tenancies if the tenancy predates October 2015.
A new era of paperless property deals is upon us following the Land Registry’s landmark decision in July 2020 to accept e-signed documents for registration.
Under NHSX, the Department of Health and Social Care, NHS England and NHS Improvement have published the Secretary of State's vision for how data will be used to improve health and care.
Ofsted recently published the findings from its rapid review of sexual abuse in schools and colleges. The review highlighted keys areas of concern and presents clear actions, which are discussed here.
To receive invitations to our events, as well as information and articles on legal issues and sector developments that are of interest to you, please sign up to Newsroom.