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EDWINA HART BACKS NEW WELSH HOUSING POLICY
Labour leadership candidate Edwina Hart says that if she becomes First Minister she will push for radical new ways of expanding funding for Welsh housing, and help the Welsh Assembly Government move towards its declared target of 6,500 new homes.
A new Welsh Housing Investment Bond would allow Housing Associations and, potentially, local authorities, to raise far more capital than they can at the moment. It would allow local authorities to begin a return to their traditional social housing role. The scheme would supported by an investment by the Welsh Assembly Government.
“What happens at the moment,” says Mrs Hart, “is unsustainable, with fewer lenders lending at higher margins and over shorter periods. Housing Associations have to rely almost exclusively on borrowing from banks and building societies, whereas the private sector can turn to the capital markets”
The plan would launch a new Welsh Housing Bond at a fixed rate of return, which would give housing associations - and possibly local authorities- more flexibility in the search for capital. They could still use banks, but could also fund a wider range of housing products. The system would involve raising equity based on property values and rental income.
“It’s clear that we need a major rethink on social housing, “said Mrs Hart. “The scheme is already well down the road as far as the planning stage is concerned, and as Health Minister I have been closely involved because the links between decent housing and good heath are so direct. I would like to see the Welsh Assembly Government get this scheme under way next year so that we can make a start on a major building programme which would be good for affordable housing and for the building trade.
6 November 2009
