23 June 2006
Social landlords have come under fire for failing to support a flagship scheme for extending home ownership.
Speaking on the same day as MPs criticised ministers for overlooking social rented housing, Communities and Local Government Secretary Ruth Kelly said she was disappointed that so few councils and housing associations appear keen to offer Social Homebuy to tenants.
Launched last year, Social Homebuy gives tenants the opportunity to part-buy their homes while paying rent on the remainder. Four registered social landlords began piloting the scheme in March.
In her first major speech to housing professionals, at the Chartered Institute of Housing's annual conference in Harrogate on June 20, Kelly said social housing must provide a stepping stone to home ownership.
'I want every local authority and every housing association not currently involved in Social Homebuy to look hard at why that is and really question whether or not taking part is good for their tenants,' she said.
Kelly told delegates that more than 3,000 people would benefit over the next two years, but later admitted she did not know how many councils or RSLs plan to join the scheme.
This year the Housing Corporation gave associations £18m for Homebuy schemes instead of an expected £30m. Jon Rouse, the corporation's chief executive, warned that the government might make the scheme mandatory if a better response was not forthcoming when bidding reopens in September. 'It's time for housing associations to put up or shut up,' he said.
Kelly announced an independent review of the role of social housing to be led by Professor John Hills, director of the Centre for Analysis of Social Exclusion at the London School of Economics.
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