HRABP - Draft 8 - Flipbook - Page 13
2 National, Regional and
Local Context
The housing market has undergone a
significant shift over the last decade at a
national, regional and local level. There has
been an increasing shortage of housing
across all tenures in the country with
housing rising on the political agenda
and becoming a priority to the current
Government.
The financial crisis in 2008 and the
subsequent recession impacted on
housebuilding as well as people’s ability to
access mortgages and loans. The housing
market has struggled to recover with
the shortage of housing driving up costs
and significantly reducing affordability.
The average age for people to own their
own home is rising, with a shift to rented
accommodation because of the lack of
affordable housing to buy, consequently
forcing up rents and expanding the
Buy-to-Let market.
Current national social and economic
policies are having an impact on the
housing market. The introduction (and
continued roll-out) of Welfare Reform
with the introduction of Universal Credit,
benefits cap and removal of the Spare
Room Subsidy (bedroom tax), as well as
broader social and economic policies, are
affecting the housing situation of many
people on low and average incomes.
Private landlords have a preference for
non-Universal Credit claimants and are
opting to sell if they cannot obtain
expected rental returns, contributing to an
increase in homelessness. Social housing
landlords’ long term financial strategies
have been affected by Welfare Reform,
the four year rent reduction policy, and
the uncertainties created by The Housing
and Planning Act 2016.
A number of the most controversial
proposed policy changes introduced by
the Housing and Planning Act 2016, such
as the sale of high value council homes
and the introduction of near market
rents for higher income tenants, are now
very unlikely to be implemented. Other
proposals have also been made voluntary
options for councils.
The impact on the economy of Brexit is
not yet fully known but immigration of
non-British European Economic Area (EEA)
nationals has reduced and the exchange
rate has increased costs for imports, with
the construction industry being particularly
affected, with higher costs and shortages of
labour. This results in higher costs for new
build housing and general maintenance
across the sector. House prices are also
expected to increase less rapidly or even
decrease.
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