The Conservative Party has often articulated the vision of a “property-owning democracy” and has put in place populist policies to advance that cause. Perhaps most notable was RTB (Right to Buy) which has given huge numbers of people a first step on the property ladder. This is in addition to increased ownership through direct private sector purchase.
I believe in the sensible application of a free market but its operation with respect to private sector housing has recently been a profound disservice to many, many people. It used to be a commonly held view that mortgages would be granted based on three times one salary, plus one times a further salary for a joint purchase. That kind of lending multiple acted as a brake on unrestrained market forces.
It all went wrong when, with crass stupidity, lenders started offering much higher multiples, forgot the meaning of risk and failed to manage the expectations of aspiring homeowners. We had a totally unsustainable market explosion, with an aftermath of many people being placed in negative equity. In this area, it is truly incredible how do not learn from past mistakes.
This recent experience highlights the need to provide the maximum range of choices for housing. InCrawley, there is a continuing requirement for more affordable homes. That is whyCrawleyand Horsham Councils have put so much effort into bringing forward the Kilnwood Vale development west of Bewbush. There are not that many large-scale developments occurring andCrawleywill have 50 percent of the nomination rights into affordable housing on this one.
In time we may also see development inCrawley’s North-East Sector which will make a further contribution to meeting housing need. There should also be an effect that reduces the housing density requirement elsewhere in the Borough.
In June, Crawley Council will review its housing allocations policy after considerable analysis and consultation. We have around 3,000 people on our waiting list so it is right to consider how vacant properties are used to meet the need, and how applications are prioritised. By doing this, we ensure that we make the most effective use of our 8,200 Council homes.
Of equal importance is the range of methods used to deliver affordable housing. This is commonly by developers providing a percentage in new projects but we are open to any approach where it makes economic and social sense. It is this pragmatism that recently caused us to embark onCrawley’s first direct-build Council homes in more than a decade.
The tenure mix is also a key consideration. We have in the past given considerable emphasis to shared equity schemes but these have not always worked well for everyone. One of the reasons is that the Council is not able to apportion maintenance and repair costs between itself and tenants, reflecting the equity held by each partner. This can become burdensome for tenants who face the full costs despite having minority ownership of the property. We have made representations to government on this matter but until the issue is resolved, rented accommodation will often be a preferable option.
Councillor Bob Lanzer, Leader of Crawley Borough Council
31st May 2011