Friday, 14 November 2008

Well, no, not that low cost, obviously..

The trade paper says almost half of all low cost home ownership schemes built by housing associations last year are standing empty.

"Associations have failed to shift 9,655 homes, according to a Housing Corporation survey of 215 social land­lords last month. Almost 40 per cent of the homes – with an estimated value of £640 million – have sat empty for more than six months.

The number of unsold properties is equivalent to 45 per cent of associations’ output of 21,538 low-cost homes last year. "

This is more than just a waste of a lot of homes. It might yet threaten the stability of significant numbers of associations, as I've argued before. At the very least it eats into the available cash in housing associations that might be used for buying out existing homeowners at the edge of their ability to service a mortgage through some kind of reverse shared ownership programme.


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