David Bexon, managing director of SmartNewHomes.com fears that the new government agency referred to in the Housing and Regeneration Bill is not the answer.
“I am concerned that the proposed Homes and Community Agency, which has been set up to deliver more social and affordable housing and promote regeneration will simply prove another Government body that will have little impact on the increased level of housing our country so desperately needs," said Bexon.
“What we need to see from Government now is action, immediate steps that will make a real difference. The Government proposes its new agency will make better use of surplus public sector land and maximise the potential for brownfield developments but words are no longer enough.
"Without immediate action and a surge in new homes, the Government seriously runs the risk of a national housing disaster, where a lack of supply results in unachievable house prices which push homeownership out of the reach of all but the extremely wealthy.”
Chris Cummings, director general of the Association of Mortgage Intermediaries (AMI), added that the long-term fixed rates addressed in the Bill were not the answer: “In some cases longer-term fixed rate mortgages can offer a degree of security and stability for borrowers. But, security comes at a cost – hence higher interest rates or arrangement fees. While some consumers may be happy to pay more to receive this security, others are not.
“It is the role of the adviser to help draw-out the costs and benefits of such matters and arrive at a recommendation best suited to the borrower’s personal circumstances.
“We recommend that more study before any proposals are progressed. With the European Commission undertaking an extensive programme of work on the credit market, the impact of the credit crunch still not clear, and the Government’s housing-building policy is yet to be implemented, the housing market is in vulnerable position.
"The unintended consequences of further change could be dramatic, hence our desire to work with the CLG to better inform policy making at this early stage.”
Luke Herbert, RICS UK public policy manager added: "The new homes and communities agency put in place by the Bill runs the risk of being short on capacity and will need a radical upgrade over the Housing Corporation and English Partnerships if it is to fulfil the remit the Government now proposes.
"The current fixation on housing numbers could overshadow the regeneration focus of the merged body. Communities are more than houses and flats, people must also be able to work, socialise and live their lives within a safe and attractive environment, something the merged organisation would be well placed to do.
"The Government must ensure that the new agency retains a role as an effective urban regeneration body and does not simply become a green field housing developer."
Where eco-towns are concerned, he concluded: "Developing any brand new town runs the risk of creating isolated pockets of housing, not linked to wider communities. The advantages of eco towns may be lost if they are not created to be strong communities or are reliant on private cars for transport. It may be better to look at the possibility of creating eco-extensions to existing communities, rather than completely new towns."
However the Chartered Institute of Housing is not in agreement. Sarah Webb, CIH chief executive designate, said: "We are delighted that the Housing and Regeneration Bill has formed the centrepiece of the Queen's speech. It recognises the growing public concern with the shortage of affordable housing.
"We are also pleased that the needs of existing tenants and residents have been acknowledged and will be addressed through the introduction of a more effective system of regulation."
