£2bn lift ‘won’t be a cure-all’
HOUSING chiefs on Teesside say a £2bn Government cash injection will only go some way to reviving the ailing housing market.
The Federation of Housebuilders has called for massive Government funding to kickstart the flagging market.
But housing association bosses claim a blanket buy-up of sub-standard housing stock will cause future problems because of the high-quality building requirements.
They want better access to mortgages for customers after the high-street banks battened down the hatches in the midst of the downturn.
Iain Sim, chief executive of Coast and Country Housing, said: “The problem is, housing associations are required to build to a much higher standards than private investors. Houses must be built sustainably, and to high eco standards.
“Buying up stock would create a two-tier quality system for our tenants.
“There are a lot of empty homes on Teesside that aren’t selling, and in terms of kickstarting the market more funding would be good.
“But it can’t just be a blanket policy of buying everything that’s available because that will only create large problems for the future.
“But the bigger issue is new mortgage approvals have fallen off drastically, and we also need to look at repossessions and better mortgage rescue packages to avoid people becoming homeless in the future.”
Around £200 million has already been earmarked for housing associations to buy stock and housing associations have already begun dipping their toe in the buyers’ market.
Money has also been set aside for new developments and upgrades.
Angela Lockwood, chief executive of Endeavour Housing Association, said extra funding was only part of the answer.
“It is a good way to kickstart the market. Unfortunately the market has tilted too far one way, but it will correct itself, with a little assistance.
“Natural market intervention will happen eventually but it will need everyone to play ball.
“The solution isn’t to blindly buy up everything in sight. The banks need to free up mortgages for first time buyers especially.
“At the moment, first-time buyers currently have to find up to a 15% deposit, which is ridiculous.”
