See our full report here with Homes for the North
setting out why this model is needed and how it should be implemented:
www.global-counsel.com/insights/rep...

Full report available here:
www.global-counsel.com/insights/rep...

This is not a replacement for grant funding.

The model works for affordable rent homes for those on middle incomes.

This means more money from programmes like the Affordable Homes can be targeted on social rent – increasing housebuilding and overall affordability (12/12)

Greater Manchester has also recently established similar approach to invest in housing for key workers.

💡The opportunity now is for the govt to scale this up to a national approach to ramp up housebuilding (11/12)

This model has been used in Scotland

✅Every £1 govt invested has brought in £3-4 of private investment

✅1,200 homes will be built

✅Scot govt is expected to have loan paid back over 25yrs

✅Scottish National Investment Bank will make a positive return on investment (10/12)

Under the fiscal rules, this kind of investment would be roughly FISCALLY NEUTRAL as the value of the projects would be counted as well as the cost.

The only cost would be on the discount offered on the loan vs HMT’s borrowing costs (9/12)

To do this, Homes England should be given a “National Affordable Housing Bank” role:

With funding to invest in affordable housing funds if they can demonstrate they will deliver certain levels of affordable homes and can leverage wider private investment into projects (8/12)

🪙The govt should use this change to invest in funds set up to deliver affordable housing at a low fiscal cost.

Using low-interest loans can turn market-rate rental housing into affordable rent.

Equity investment can attract private investment, incl from pension funds (7/12)

However, at the Autumn Budget the government changed how it measures debt:

It now uses “Net Financial Debt” which considers the value of government financial investments as well as their cost (6/12)

At the Spending Review the govt needs to consider how to target funding to boost housebuilding.

🤔BUT the Chancellor faces a particularly tough fiscal situation leaving limited room within the fiscal rules for the kind of investment needed using existing tools (5/12)

The government’s planning reforms are a great start.

Higher housing targets will increase local authority ambition and the grey belt reforms will bring more land into the system.

Yet, the government is still forecast to fall short of its 1.5 million homes target (4/12)

Housing associations face acute challenges.

High construction costs and new government safety/efficiency standards have required substantial investment in existing stock.

Many have had to halt their new build programmes, resulting in the largest fall in starts since 1978 (3/12)

Housebuilding rates are at the lowest levels since the pandemic, due to high interest rates and increased borrowing costs.

40% fewer projects were started last year than the year before – with a similar number now as after the financial crisis (2/12)