The CLG Select Commmittee have produced a report into financing new housing
They suggest
- large-scale investment from institutions and pension funds
- changes to the financing of housing associations, including a new role for the historic grant on their balance sheets
- greater financial freedoms for local authorities
- new and innovative models, including a massive expansion of self build housing
The report concludes by saying
- housing associations should play a role in attracting institutional equity investment
- allow the creation of private, unlisted residential REITs (Real Estate Investment Trusts)
- establish a pilot housing investment fund (a bank) run by housing associations
- consult housing associations on the treatment of the historic grant on their balance sheets
- lift the cap on local authorities’ borrowing for housing, and allow councils to borrow in accordance with the Prudential Code
- the Government make additional resources available in the event that “like-for-like” right to buy replacement cannot be delivered
- incentivise local authorities to support pilot “volume self build” schemes by allocating sites and taking a flexible approach to planning
The Government prodiced a housing strategy in November 2011 and will repsond to the select committee in the summer of 2012