MORE HOUSING NEWS Labour contemplates housing power shift Labour is allegedly studying plans drawn up by the centre-left Institute for Public Policy Research, which suggest housing benefit should be shifted from subsidising high rents and be given to councils to build homes instead. Currently, 95% of government spending on housing goes through the benefit system, with just 5% invested in new homes. The proposals would also see a transfer of power to the regions. Four phases are envisaged: the first would give councils more borrowing power to increase investment and reduce the pressure of housing benefit, the second would permit councils to set rent subsidy levels in their local private sector, the third would give control over central government capital housing budgets and enable councils to set higher rents for wealthier tenants, and the fourth would see authorities given multi-year budgets to oversee affordable house building. The IPPR says the current distribution of power and incentives means that local government is left administering a rigid system over which it has little control, while gaining no rewards and facing no penalties for its performance. ------------------------------------------------------------------------ Ward: Help landlords contribute to housing solution Alan Ward, chairman of the Residential Landlords Association, advocates more help for landlords, rather that more regulation, compulsory licencing schemes or rent controls. Whilst admitting that rigorous enforcement for the small number of poor landlords who bring the sector into disrepute is required, encouragement and support for landlords would incentivise them to invest in building the new homes the nation so badly needs. Mr Ward suggests measures such as rolling over CGT so sale proceeds can be reinvested in a rental home, a fairer treatment of capital expenditure on repairs and improvements and VAT relief on substantial work would all help landlords to invest to improve standards.
Posted on: Mon, 09 Jun 2014 12:44:42 +0000
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