David Cameron's controversial housing bill is facing yet another concern coming from the Local Government Association. The LGA is urging peers to make a number of amendments to the legislation on the back of fears that it could lead to increase in homelessness in the United Kingdom.
Councilor David Hodge wrote to The Guardian and said that there are parts of the bill that could have the "unintended consequence of increasing homelessness and pushing more families into the more expensive private rented sector." This is because the legislation includes elements that would force local authorities to sell vacant high-value properties to fund the government's Right to Buy policy, thereby decreasing the affordable houses for rent. By forcing the councils to pay the government through selling council homes, the local government leaders said it would make it hard for the council to invest in new affordable council housing.
The local government leaders are also concerned over the government's starter home scheme wherein developers are compelled to apportion 20 percent properties in new developments for first-time buyers below the age of 40 at 20 percent discount.
"Current proposals for starter homes carry a risk that a crucial supply of new affordable rented homes will be displaced, and despite 20 percent discounts they will still be out of reach for the majority of people in need of an affordable home," they told The Guardian.
Senior councilors also said, per Mirror, "At a minimum, we urge peers to back amendments that allow councils to retain enough receipts from every home sold to be able to replace it in the same area."
"Councils support measures to boost home ownership and starter homes are one of the ways this can be achieved, but we are also urging peers to back amendments allowing councils to decide how many starter homes, alongside affordable rented homes, are on each development to ensure they meet the needs identified by councils with their communities."
