Unlocking Affordable Homes

This week, I joined Parliamentarians at an event hosted by the YMCA on housing for younger people.

I support the YMCA’s aim for every young person to have access to affordable, good quality, safe and secure housing. I applaud the YMCA’s ambitious plans to build 100% affordable accommodation to help with the housing crisis across the country. The YMCA have put forward the following recommendations:

1. The Government should provide upfront funding for land acquisition for organisations which are looking to develop projects of 100% affordable housing.

2. The Government should increase funding to local authorities to ensure that planning departments are well staffed and resourced, and to enable local authorities to offer land or buildings for development at a below-market rate for affordable housing providers.

3. Local authorities should be required by Government to consider the needs of young people as a specific group in their local housing needs assessments, and to provide affordable accommodation specifically for young people in their area.

4. Homes England should undertake a review of its application processes, funding requirements and funding model in regard to how they unfairly hinder smaller providers’ access to funding. Homes England should then take action to mitigate these barriers, for example by developing a separate, simpler application process for smaller providers (and any organisations developing 100% affordable accommodation), which removes any unnecessary barriers and is better adapted for the circumstances and needs of smaller providers; and by paying more of the funding at the beginning of the project, e.g. 95% on purchase of the land and 5% on completion.

5. Homes England should increase its flexibility around grant rates, and offer higher grant rates for 100% affordable accommodation projects. The Government should increase funding to the Affordable Homes Programme in order to allow Homes England to offer higher grant rates.

6. Homes England grants should depreciate over time rather than remaining on buildings in perpetuity. After 30 years the grant should depreciate by 50%, and after 60 years the grant should be written off.

 I hope the Government will take seriously these proposals and I will continue to press them to build the homes our young people need.