Affordable Housing in London - Essay Example

 Affordable Housing in London Introduction Unlike the rest of the country, London has a different housing market. These includes property demands, tenures and households mix, affordability or buying affordability as well as the levels of acute need for affordable housing. These differences distinguish London housing from the rest of England and contribute to the affordable housing challenges that London faces. But London is booming, the economy is on the rise and thus more pressure is rising on infrastructural development especially affordable housing. The population of London itself has increased tremendously as is expected to hit 9 million by 2031 (Bromley, 2013). The housing challenge that is on the continuous rise is becoming a social and economic challenge to this town. What has been on offer has been more unaffordable over the past. There is need for increased supply of housing facilities and not just housing but affordable housing. The housing challenge leaves London as a city facing an epic affordable housing challenge. The number of homes being build historically has been too low. The inexorable cycle paths that the economy flows have also been a reason for the housing problem (Grigsby, & Rosenburg, 2012). To address this housing problem, London has undergone several policy changes aimed at providing a sustainable solution. This paper therefore explains some of the current changes that have been experienced in the affordable housing policy in London and the possible solutions that can lead to affordable housing within this great city. Current changes in affordable housing policy in London 800 Affordable housing policy has overtime been the dream for the Londoners to find a sustainable solution to the housing challenges affecting this great city. In 2014 for instance, London housing strategy recognized that there is need to bring together adequate resources to enable London se the development of 42,000 houses per year. This aims at virtually doubling the housing delivery for London. The strategy recognizes the need to collaboration between governments, private sector, mayor ad boroughs. There is need for a policy framework that promotes support bringing up of surplus public land, as well as in promoting institutional investment to see London deliver the necessary housing. The London housing strategy under section 3.2 provides for policy reforms to create a flexible market and promote the growth of intermediate housing. The London policies have tremendously changed over time and in 2014, a policy to see increased housing deliveries involved the following (GLA, 2014): Policy 1: the mayor of London city is expected to work with other partners to deliver the planned target for London which is 42,000 houses per annum. The policy provides for 25,000 market homes; 17,000 affordable homes that people can rent or buy; and 5,000 of the market homes shall be for purpose-built. This will include the long term private rent especially on the schemes which have more than one phase. Policy 2: the period of 2015-2018 as an investment period will see the mayor deliver 15,000 affordable homes each year. This will comprise 40% for the low cost homes and the other 60% for the affordable and caped and discounted rents. The discounted affordable rent housing will be given priority for the low income working households. Policy 3: targets to double the delivery of the number of first step homes in the capital by 2020. Additionally, it will be doubled again by 2025. This will see 250,000 Londoners get affordable houses. Policy 4 targets the delivery of homes to the Londoners tackling overcrowding as a challenge. This seeks to support mobility so that those who are under-occupying can then downsize to free up other space/ properties for the overcrowded ones. Additionally, it aims to make available funding for sustainably larger homes. This refers to those with needs for 4 bedrooms and above. They are strategically planned for in the 2015-2018 housing program. Further, this policy seeks to proceed with to commit to a long term aim that will see the provision of larger family homes. These will be done in line with the strategic housing market assessment. All this four policies are identified and discussed in the London housing strategic plan and shall be monitored by the GLA. In addition, there are also policies seeking to improve the existing estates and homes. By the 2030, the policy aims to ensure that the mayor retrofits all the poorly insulated homes in London. All the London affordable housings shall undergo environmental retrofitting by 2020. The policy also intends resolve the London boroughs home backlogs. This shall be met by 2016. The policy also changes the period that houses in London should remain empty. This seeks to ensure that no space is wasted and as such it states that no more than 1 % of the housing in London should remain empty[Hom15]. According to Harrison, wilson & Johnson (2013), the policies have also changed to support working Londoners. The changes seek to establish a more structured intermediate market for housing facilities. A fund shall be provided by the mayor that will enable delivery of flexible home ownership program. This program will enable the household to chose a a first steps home and agree to the financial package that is appropriate. The housing associations who wish to offer their tenants the right o part buy the houses shall also be financed by the Mayor through GLA. Moe participation as well as competition will be encouraged by the mayor in the mortgage market. The policy changes are numerous ranging from those that facilitate mobility to those that encourage rental housing. The policy changes provides for housing opportunity priority for the working Londoners to ease their burden. The rent increases are limited and the charges levied by the home owners are monitored to ensure they are proportionate, transparent and justified. So that the housing needs are met, the policy changes have made it possible for the mayor to lobby government for changes in the finance arrangements for housing within the capital. The borrowing rules for housing purposes have been relaxed and stamp duty land tax have been made more equitable and more efficient (GLA, 2010). Possible solutions In order to address the London housing challenges, there is need for sustainable programs and policy implementation that will the targets met. The housing policy reforms that the coalition government needs to be properly implemented and monitored closely by the GLA to ensure maximum outcome. The delivery models adopted should be sustainable and appropriate underpinned by the clear definitions of affordability as well as housing needs (Bramley, 2013). The following are some of the specific solutions that can be adopted to address the housing challenges in London city[Lon14]: First, there should be an increment in the housing budget for the city. This will enable availability of funds that can then be allocated for the housing programs. Over the recent past, there has been a reduction in the national housing budget. This translates the low housing budget to in the capital. Therefore there is need for an increased funding for the programs to enable delivery of affordable housing that can meet the needs of Londoners. It is evident that over the past, boroughs have been failing to meet their targets for affordable housing. All attributed to financial inadequacies. Thus improving budgetary allocation for housing will come a long way in enabling the implementation of the affordable housing policies and thus achievement of the housing goals. There is need to adopt new technology in housing delivery. This implies that the government, private sector and all those engaged in production of housing facilities need to adopt relevant technology that lowers the production cost and makes it possible for maximum utilization of space. This will ensure that maximum households are meeting their housing needs at an affordable rate. Removal of restrictions that stall homes which are available for commercial housing needs to be effected. This is because; more and more people are in need of these spaces which brings a lot of pressure in the city. As such, the restrictions should be removed to ease the pressure and have more people accommodated. Temporary removal of restrictive planning regulations that hamper the growth of housing sector such as improvement of homes by home owners need to implement. This will reduce the difficulties experienced by the home owners in improving their houses to expand the space hence accommodating a bigger population. Zoning regulations should be revised to enable integration of commercial and residential housing. This will enable increased residential housing within the city centers where largely is occupied by commercial houses. The flats are able to accommodate both commercial and residential housing needs. Additionally, social housing tenancies as well as welfare reforms need to take place. The reforms should be able to make social mobility easier and life time tenancies for social homes. This will also ease rebalancing of the housing stock by the tenants. The flexible tenancies should be reduced to one year and not two years as it is now. This will enable housing to be given to those that are really in need. Finally, there is need to improve the local incentives to encourage attitudes of the locals to invest in homes. This can be done through loans, grants, provision of amenities and even loans bonus. The incentives will make it easier for the locals to venture in housing as an investment bridging the housing gap in London city. Conclusion London has a different housing market compared to other parts of England. These includes property demands, tenures and households mix, affordability or buying affordability as well as the levels of acute need for affordable housing. With London’s booming economy there is more pressure rising on infrastructural development especially affordable housing. The housing challenge that is on the continuous rise is becoming a social and economic challenge to this town. The government however has taken tremendous efforts to change policies over time with regards to housing development within the city. Among the policies are those that relate to financing, mobility, tenancy, housing opportunity priority for the working Londoners to ease their burden, removal of restrictions that stall homes which are available for commercial housing needs to be effected, among other policies explained in this paper. The essay has further identified possible solutions to the housing problems facing London city among them, improvement of the local incentives to encourage attitudes of the locals to invest in homes; zoning regulations should be revised to enable integration of commercial and residential housing; need to adopt new technology in housing delivery; there should be an increment in the housing budget for the city. Reference Bramley, G. (2013). Housing market models and planning. Town Planning Review, 84(1), 9-35. Bromley, R. (Ed.). (2013). The urban informal sector: critical perspectives on employment and housing policies. Elsevier. Grigsby, W. G., & Rosenburg, L. S. (2012). Urban housing policy. Transaction Publishers. Hom15: , (Homes & Communities Agency, 2015), Lon14: , (London First, 2014), Read More