6 CONCLUSION
309. More homes are needed. More homes are needed
for social renting; more homes are needed for private renting;
and more homes are needed for owner-occupiers. The supply of rented
housing is a crucial element of the programme of action necessary
to achieve the aim of a decent home, at a price people can afford,
within a sustainable community. Housebuilding is a vitally important
part of that programme. But so too are improvements in the management
of existing homes, and improvements in the planning of communities.
310. In the social rented sector, freedom to build
is crucial. We have concluded that 50,000 social rented homes
need to be completed each year to meet new demand and tackle the
backlog. But we recognise that this target is unlikely to be achieved
before the next spending round in 2011. Even the most recent increases
in funding for new build in the social rented sector will not
be enough to ensure that the Government's ambition of a decent
home at an affordable price is available to all who need it in
the social rented sector. Every available mechanism should be
exploited to add more social rented homes, including the use of
planning obligations and increasing the opportunities for housing
associations, ALMOs and councils to build new social rented homes
from other sources of finance such as borrowing against their
assets or future rental income.
311. In the private rented sector, the need is for
greater institutional investment. Individual investors purchasing
properties for buy-to-let have given a welcome boost to supply.
But small buy-to-let investors often make poor landlords; and
in any case the "credit crunch" and declining confidence
in the housing market may mean that the trend has run its course.
Further significant increases in supply in the private rented
sector will require large institutional investors to be attracted
back to the sector. Tax and regulatory reform are the levers which
will encourage such investment; we call on the Government to explore
all avenues which might lead to the achievement of that aim.
312. Meanwhile, there are improvements to be made
to the existing stock in both the private and the social rented
sectors which will both improve supply and, equally importantly,
improve the experience of the people who live there, the tenants.
The efficiencies which have been brought to the refurbishment
and construction of social rented homes by the growth of housing
associations, the ring-fencing of local authority landlord accounts
and the introduction of ALMOs now need to be applied to the management
of the existing social rented stock. The reviews by Professors
Hills and Cave have shown the way: the Government should now be
energetic in implementing their conclusions. Better regulation
is the imperative in the private rented sector. Good foundations
exist to introduce a system of accreditation devised by trade
bodies and enforced by local authorities, with the ultimate oversight
of Oftenant. The Government now needs to build on those foundations,
and to add to them further financial and regulatory incentives
to private landlords to manage and maintain their stock effectively.
313. Alongside issues of supply and management run
the principle of the creation of mixed communities, and the fundamental
question of the role of social housing. The growing concentration
of social tenants among the lowest social groups lessens their
employment and education potential and lowers the quality of public
and private services supporting their communities. We have set
out the choice facing the Government: whether to leave social
housing as the sector of last resort; or whether to make the sustained
and substantial increases in spending necessary to enable it to
play its role in the creation of mixed and sustainable communities.
We strongly believe that the latter choice is the right one. We
call for the creation of mixed communities to pervade all spatial
and housing policy, and for local authorities to be given the
freedom, support and resources necessary to pursue this aim.
314. Our Report comes at a crucial time for housing
policy. The imminent creation of the new regulator of social housing,
Oftenant, and especially of the Homes and Communities Agency,
is a significant milestone in the progress of the Government's
housing policy. Many of our recommendations will fall to these
two agencies to implement. But central government, local government,
housing associations and the private sector all have a vital role
to play too. All should respond positively to this Report; and
increase the quantity and improve the quality of the supply of
rented housing.
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