NHA urges action on new builds and mortgage rescue scheme
The National Housing Association (NHA), which represents 1,300 not-for-profit housing associations in England, is asking the Government to use up to £1 billion to buy new homes from housing developers who cannot sell the properties they have built.
The sale of new homes has plummeted since the beginning of the year and many developers have mothballed new projects.
It is therefore unlikely that the social housing sector will see the increase in stock expected for this year because many flats and houses will simply not get built.
In its paper entitled Protecting Households, Delivering Homes the NHA is also proposing the development of a nationwide mortgage rescue scheme whereby housing associations would buy-up the properties of households in financial trouble.
Homeowners could then become social tenants and have the opportunity to buy their properties back when their finances improve; such schemes already up and running within the social housing sector.