The budget announcement delivered by Rachel Reeves yesterday echoed several key declarations from the past weeks, which could greatly impact the housing industry. With updated funding and policy revisions, the situation regarding housing supply and financial oversight looks set for transformation. However, the crucial question remains: will these adjustments be adequate to initiate the construction of the 1.5 million new homes promised in Labour’s manifesto?
The confirmation of an extra £500 million in funding for the Affordable Homes Programme was positively received. Additionally, a new five-year rent agreement was established. Announcements included £3 billion in guarantees to enhance housing availability and assist small-scale builders, along with changes to the right-to-buy policy and a decrease in discount rates.
The confirmation of a new five-year rent settlement should provide some much-needed financial certainty to RPs. This will be set out in a consultation, with a proposed Consumer Price Index (CPI) plus 1% rise in rents for the next five years. The consultation will also seek views on options of providing more certainty, such as longer-term settlements.
Modifications to the Right to Buy program focus on safeguarding the current social housing inventory by lowering the maximum discount for council tenants from 70% to 25%. Additionally, these changes aim to boost the availability of affordable housing by enabling local governments to keep the entire proceeds from right to buy transactions and reinvest them into new housing developments.
The announcements made today, which offer essential funding and reassurance regarding rent hikes, are expected to ease some of the difficulties and worries within the industry. However, the costs tied to the continuous requirement to renovate and enhance existing properties, along with the emphasis on elevating the safety and quality of current housing, suggest that the commitment to deliver 1.5 million new homes remains a significant hurdle.
The Expertise of Tozers’ Affordable Housing Team
At Tozers, we take great pride in providing outstanding legal services for our affordable housing clients. Ranked in both Legal 500 and Chambers and Partners, our dedicated team focuses on grasping the distinct needs and objectives of each client, laying the foundations for success and optimising opportunities. We offer straightforward, pragmatic legal guidance for even the most challenging matters, nurturing robust client relationships through our friendly and transparent approach. Our team consists of highly skilled professionals specialising in affordable housing, many of whom hold senior positions. Additionally, we present competitive pricing with flexible payment plans, including fixed fees for continuous support.
We assist registered providers throughout the UK by offering extensive legal guidance. Our expertise covers site acquisition and development, with a focus on s.106 agreements, land-led initiatives, and collaborative ventures. We manage property transactions, including right to buy, shared ownership, Help to Buy, and leasehold enfranchisement. Our team is proficient in financing and secured lending, covering portfolio financing, mergers, and stock optimisation. Furthermore, we tackle housing management concerns such as anti-social behaviour, property disrepair, rental arrears, and repossession matters.
How can Tozers help
To provide the best possible service, we draw on the expertise of our firm’s other teams. This allows us to offer specialist advice in areas such as employment law, planning, construction, property litigation, charity law, governance, and data protection. Our holistic approach ensures that we can meet a broad range of the legal needs of our clients in the affordable housing sector. If you have any questions about the recent budget announcement or need support in any of the above areas, please get in touch with the team.
