“There’s no one to take the houses built in London.” The Labour Government promised that more houses would be built, and those efforts are already being made. The hundreds of houses built in London might be “white elephants,” though to some extent. Here’s why the affordable houses in London are sparking concern.
Houses and No Buyers
Why is there a phenomenon of house availability, yet there are no buyers? This question has been raised of late, according to The Independent.
Difficulty Coping With Capacity
Housing associations are not able to afford the “affordable” homes because economic pressures are “creaking at the seems,” some experts say.
Lack of Capacity
The Head of Affordable Housing at Barratt Housing in London, Syreeta Robinson-Gayle, told the Independent that there was a lack of capacity.
Deterred by High Costs
Gayle mentioned that housing associations would usually buy these homes. However, these organisations are not buying the homes due to “high costs and a tough economic outlook,” she said.
Why the Lack of Houses
The Centre for London did a piece on the shortage of houses in the State Capital. Many local residents struggle to pay their mortgages, and often, they are left broke when they have completed it.
It’s a Crisis
The Centre for London pointed out that more than 300,000 local Londoners are waiting for state houses. Rough sleepers have increased and are reportedly the highest in the last ten years.
Solution Talks
In a London Housing Summit, Councillor John Williams said Southwark took the initiative to write its own design standards. Along with designs, they also agreed on uniform exteriors for new developments.
Combining Heads
Williams was amongst other housing partners and speakers who discussed solutions for the London housing crisis at the summit.
The Process
According to the Head of Affordable Housing, she said that the process includes the council approving the plans to build. After that, private house builds can begin using the 106 agreement.
The Section 106 Agreement
Gayle said this negotiation process between planner and house builder was known as a 106. In the 106 agreement, even when private houses are built, some homes must be listed as “affordable housing.”
Affordable House Sales
Once built, the private builder can choose to sell the affordable house portion of their properties to a registered provider. From there on, the provider will manage affordable homes when they are tenanted or purchased.
Overwhelmed 106 Strategy
Gayle also mentioned that even though the 106 agreement exists, the system is “creaking at the seams.” She told the Independent that the registered providers responsible for taking over these houses could not purchase the homes despite already being in the build plans and process.
The Situation Is Unique and “Unusual”
Gayle told The Independent that the effect of registered buyers being unable to take over these homes is resulting in scheduled builds but no direction for the homes. The process is serious and needs a “serious resolution.”
Response From Housing Association Chair
G15’s Group of London Housing Association’s chairperson, Fiona Fletcher-Smith, commented in an interview that the G15 severely underfunded them. They no longer received a large budget to purchase and manage affordable houses built in London.
Soaring Cost and Economic Pressure
Smith told the Independent that “soaring costs and economic pressures were influencing how they were processing homes. She said “…the critical focus is on building safety and investing in existing homes and services.”
Repairs Are Prioritised for This Reason
After the tragedy of Awaab Ishak, living in one of the Rochdale Boroughwide Housing (RBH) properties. Sky News reported that alleged respiratory difficulties brought on by mould had caused the tragic event.
New Laws On Affordable Housing Maintenance
The Awaab’s Law was instated in 2023, and it prioritises the maintenance and safety of these homes. The National Housing Federation (NHF) said that they were dedicated to never letting something like this happen again.
Landlords Can Be Held Accountable
If Awaab’s Law is not applied and regulations are not followed, the law permits tenants to act against their landlord.
The Government Is Delivering
UK Government is “delivering what they promised” “..to boost housebuilding, and there is nowhere in the UK that needs it more than London,” the Policy Delivery Director at BuisnessLDN, Johnathan Seager, told the Independent.
Finding a Way
Seager also said finding a way around the “log-jammed 106 system” can help speed up the processes. He also noted that there are positive plans in place. “A quick fix is allowing councils to receive the cash equivalent of the affordable homes from the developer…” he said. In this way, various authorities could support their housing schemes.
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