Prime Minister Theresa May has pledged £2bn of funding for social housing building tens of thousands of new homes.
The government has announced long-term funding of £2bn to build ten of thousands of affordable homes which has been welcomed by housing associations.
Theresa May told the National Housing Federation Summit investment would allow housing associations to apply for funds as far ahead as 2028/29 to help more people on the property ladder.
Ownership is an unrealistic goal for many young people and for those that cannot afford to buy their own home, social housing would provide them with a place to live in mixed estates of similar standards for properties.
The lack of suitable properties on the market at an affordable price for first time buyers means they must continue renting and saving for a bigger deposit.
Housing associations deliver homes
May said there is a certain stigma attached to social housing with some residents feeling marginalised and overlooked and are others ashamed their home belongs to a housing association or local authority.
Across England housing associations manage almost three million properties giving them the potential to raise standards of homes and shift perceptions of social housing.
Many people in society look down on social housing which includes the buildings themselves, location, quality and appearance make them distinct from the community in which they stand.
Good property management provided by housing associations gives people in social rented homes the stability to be successful in their work or business.
This can lead to the opportunity to be a first time buyer through shared ownership, the vital step for many to get on the property ladder.
These homeowners can buy additional shares of their home and benefit as remortgage buyers by switching to a preferential rate reducing their monthly repayment costs.
In the future with rising house prices creating equity these home movers may aspire to upsize to a more expense home although they may need a larger deposit or mortgage.
Even in later life owning a home plays an important role as a greater number of equity release mortgage buyers access wealth in their property to improve your quality of life or help your children start or expand a business.
Government to spend £40bn on housing
To increase the number of new build homes in the UK, the government have committed more than £40bn.
This includes creating the infrastructure to allow developments to begin and removing planning restrictions and other barriers to building new homes.
The prime minister said in 2016/17 more than 2017,000 additional homes were added across England, a 15% increase on the previous year.
May has called for housing associations to not just acquiring a proportion of the properties commercial developers build, but to lead major developments themselves.
Housing associations need the stability provided by long-term funding deals and eight have received £600 million and paving the way for almost 15,000 new affordable homes.
These affordable homes are not available to buy-to-let investors as it supports new home ownership to people struggling to get on the property ladder.
The £2 billion initiative should allow housing associations to create large-scale, high-quality developments with genuinely mixed communities, the right infrastructure and truly affordable housing.
What are your next steps?
Call our LCM mortgage brokers for advice if you are a first time buyer, want to remortgage your existing home for the best mortgage deal, moving home or are a buy-to-let investor.
For equity release buyers our London City Mortgage advisers can recommend lifetime mortgages allowing you to receive cash from your property to repay an interest only mortgage or gift to a child or grandchild the deposit on their first home.
Start with a free mortgage quote or call us and we can take your details. Learn more by using the property value tracker chart, mortgage costs calculator and equity release mortgage calculator.
