Shapps launches ‘Affordable Rent’ programme

14 Feb 11
The Affordable Rent programme, which gives giving social housing providers the power to charge up to 80% of market rents, was officially launched today.
By Vivienne Russell

 

14 February 2011

The Affordable Rent programme, which gives giving social housing providers the power to charge up to 80% of market rents, was officially launched today.

Housing minister Grant Shapps published a step-by-step guide for providers who wish to apply for funding under the scheme.

The government is to invest £4.5bn to provide 150,000 affordable new homes over the next four years. Registered providers are invited to bid for £2.2bn of this.

Under the scheme, landlords will be able to offer fixed tenancies, charging rents of up to 80% of local market rates. Providers will also have the option to convert a proportion of their existing social homes to Affordable Rent as part of a package agreed with the Homes & Communities Agency.

Shapps said: ‘With some 4.5 million people on social housing waiting lists, it’s clear that not only do we need more homes but also a complete overhaul of the system, to one that offers much more flexibility that the current “one size fits all” approach.

‘The new Affordable Rent scheme launched today ticks both boxes. It offers landlords the freedom they need to offer a range of solutions to people’s housing needs, while being able to raise extra rents to invest in housebuilding.’

HCA chief executive Pat Ritchie said: ‘This new approach gives increased flexibilities for local authorities and providers to plan ahead and deliver much-needed affordable homes.

‘At a time when funding is tight, this new way of operating will allow us to do more with less resources, but it will rely heavily on effective working partnerships, which is where the HCA will play a significant part.’

David Montague, chief executive at L&Q housing association, said the new flexibilities would help resources go further.

‘We want to create innovative new partnerships with local authorities and deliver homes where they need them. We look forward to working in partnership with both government and local authorities to deliver quality new homes which people can afford,’ he said.

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