Star date: 27th November 2015

SALFORD COUNCIL SET TO APPROVE CHANGE IN AFFORDABLE HOUSES FROM RENT TO SHARED OWNERSHIP 

Next week, Salford Council's planning panel is set to approve a move to convert affordable housing from rent to shared ownership at the Burgess Farm development in Walkden and the Bridgewater Village development in Winton.

While only a few houses are affected, this is the tip of the iceberg as affordable housing providers seek to reduce social rent housing for the most economically disadvantaged in the city.

Full details here...

For those who rely on social housing things have got bad. Now they are about to get even worse.

First, virtually all of Salford City Council's housing stock was transferred to private companies, reducing democratic control and allowing change of tenancies. Then the Council itself changed the criteria for inclusion on the housing waiting list, aiming to kick seven thousand people off it, while admitting that "most applicants have little chance of ever being re-housed" (see here)...

Now comes the start of the end of social rented housing in the city, with the path paved by Tory Government policy. This includes the `right to buy' social housing and various other recently announced schemes relating to shared ownership.

Companies like Salix and City West want to reduce the proportions of social and so-called `affordable' rent houses and increase shared ownership schemes, including where there are already agreements in place for developers to provide affordable housing via Section 106 clauses.

Next week, Salford Council's planning panel will almost certainly approve the conversion of affordable housing, from rent to shared ownership in Section 106 schemes at the Burgess Farm development in Walkden and the Bridgewater Village development in Winton.

While the number of properties concerned is very small – four houses in each development – this is possibly just the tip of the housing iceberg.  The planning report explains "RPs [Registered Providers] are reviewing their business plans and existing affordable housing commitments, and are looking to deliver more intermediate affordable housing, compared to social or affordable rented housing..."

`Intermediate affordable housing', or shared ownership, works for some people but definitely not for others. Under the scheme, people buy a share of a house between 25% and 75%, and then pay rent on the proportion of the property they don't own. This means finding a deposit and getting a mortgage, excluding the very people who need social housing the most. Some of those who have been involved in shared ownership complain of increasing service charges and internal maintenance responsibilities that make the properties far from `affordable'.

In the bigger picture, shared ownership means that less socially rented properties are built and available, forcing people into private rent properties with higher rents and possibly unscrupulous landlords.

With a move already underway in many Salford developments from social rent to the more expensive `affordable' rent'(80% of market rent), and with more shared ownership houses also taking the place of social and affordable rent, the future for those who are desperate for social housing looks bleak...

* See also yesterday's Salford Star article on planning secrecy, plus the diversion of funds from social housing to the Mayor's pet project Meadows bridge and how Salford will be lucky to get two social houses from over 1,000 properties up for planning approval next week – click here