This Forum posed the question: what next for the cross-subsidy model?
Cross-subsidy is at its limits – the point must be made to government that the model has reached capacity and capital subsidy (land) should be brought forward as a counter cyclical solution.
The current status of the market could lead to housing associations repurposing their stock by moving away from shared ownership and returning to rental until the market picks up. Uncertainty in the political environment is weighing on investor sentiment.
There are challenges facing the younger generation in getting on to the property ladder and a growing trend among local authorities to take a collaborative approach and put housing front and centre of their agenda.
Local authorities can absorb risk differently and can change tenure on housing schemes over a lifetime, so immediate issues of cross-subsidy have less effect.
Whilst the cross-subsidy model has not delivered for affordable and social housing, with encouragement from public bodies, the build to rent model is now being delivered at greater scale, offering discounted market rent linked to local rent levels.
There is an opportunity to combine build-to-rent and rent-to-buy models, alongside social and affordable rent, to focus on lower risk/counter cyclical tenures to maintain market momentum.
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Date:
Sponsors:
Contributors:
Caroline Compton-James, Deputy-Chair, The Housing Forum
Director, Strategy & Communications, Osborne
Tonia Secker, Head of Affordable Housing
Trowers & Hamlins
Mike De’Ath, Partner
HTA Design
Barbara Brownlee, Director of Housing & Regeneration
City of Westminster
Tracey Lees, Chief Executive
Wandle
Helen Collins, Head of Housing Consultancy
Savills
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