Posts tagged 4.5 billion investment
Many Victorian homes across England which were used for social housing in the slump are to be sold off to raise a £4.5 billion investment to fund the largest social house building programme in England since the 1970s.
Selling social houses worth more than £177,000, the median house price in England, will raise billions of pounds that could be used to build more than 100,000 new homes every year, creating up to 340,000 new jobs in the building engineering industry, a new report by the UK’s leading think tank, Policy Exchange, revealed today.
The think tank says that selling off social housing worth more than the average property in each region* could create an unprecedented housing building scheme which will generate thousands of jobs for trade professionals, including electricians, plumbers and gas-engineers.
According to the report, named “Ending Expensive Social Tenancies”, urging the sale of social housing in more expensive areas and the reinvestment of funds to build more homes will bring economic growth and raise significant financial investment each year.
The scheme is set to reduce the housing waiting list by between 250,000 to 600,000 households in five years.
The report found:
- Expensive social housing accounts for over a fifth (21.8%) of the total social housing stock in the UK. This equates to 816,000 out of a total of 3.78 million properties.
- London has the highest proportion of stock (30.7%) and the North East contains the lowest (14.8%)*
- The total value of expensive social housing is £159 billion. London contains social housing worth £71.9bn while the North East has £4.4bn worth of expensive social housing stock
- Approximately 3.5% of this stock becomes vacant a year due to people moving out or dying. This means that the government could sell a total of 28,500 properties on the open market each year. This raises £5.5 billion a year.
- After paying off the debt held against the stock, the total figure raised is £4.5billion.
*The percentage of expensive social housing above the median value varies by region (adjusted by bedroom size)
|Region||Total Number||Percentage||Value of properties above median|
|Yorkshire and the Humber||79,516||19.3||£9.23bn|
|East of England||97,760||26.0||£17.bn|
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