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Affordable housing progress made but statistics hit by coronavirus

The number of affordable housing approvals and starts in Scotland has increased compared to a year ago while affordable home completions have fallen, new figures have shown.

The housing statistics quarterly update for June 2020 found that in the year to end March 2020, there were a total of 12,886 homes approved through the Scottish Government affordable housing supply programme, which includes off-the-shelf purchases and rehabilitations as well as new builds. This is an increase of 1,756 homes (16%) on the previous year, and an increase of 62% compared with the year to end March 2016.

In the same period, 12,045 affordable homes were started, an increase of 1,173 homes (11%) on the previous year, and an increase of 57% compared with the year to end March 2016.

There were 9,286 homes delivered in the year to end March 2020, a decrease of 282 homes (3%) on the previous year, but an increase of 42% compared with the year to end March 2016.

It should be noted that the amount of affordable housing supply activity recorded in the most recent quarter January to March 2020 will have been impacted on by the introduction of government advice and measures to reduce the spread of the coronavirus (COVID-19) from mid-March onwards, in which non-essential construction activity stopped, and home buyers were advised to delay moving to a new home where possible.

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This has lowered the total amount of activity recorded for this quarter compared to what would otherwise have been the case. Year to date totals to end March 2020 will also have been affected.

Figures for the next quarter April to June 2020, which are due to be reported on in the quarterly housing statistics update in September 2020, are likely to see an even greater impact due to COVID measures continuing throughout April and May, and into June 2020.

The statistics were due to include an update on all-sector new house building starts and completions to end December 2019, with more recent figures on social sector new builds to end March 2020.

However, due to the impacts of COVID-19, some local authorities have been unable to provide new build data to the usual timescales. The government said it is working with local authorities to agree reasonable extensions to submission deadlines, and is aiming to publish this new build housing data as soon as possible.

Commenting on the statistics, the Scottish Federation of Housing Associations (SFHA) repeated its call for housing to be at heart of Scotland’s economic recovery.

Head of policy and innovation, Lorna Wilson, said: “The Scottish Government has made progress into tackling housing need in Scotland since 2016, and it looks likely that it was on track to meet its 50,000 affordable homes target, before the programme was paused due to the coronavirus pandemic. The government must be given credit for this, and it’s vital this progress – and the ambition behind it – is maintained and not lost.

“SFHA recently released research with CIH Scotland and Shelter Scotland which found that we need 53,000 affordable homes to be delivered between 2021–2026. By committing to this new target, the government can reduce housing need, tackle child poverty and kick-start Scotland’s economic recovery from the coronavirus crisis.”

The SFHA also welcomed this week’s report by the Advisory Group on Economic Recovery which also called for the Scottish Government to invest in affordable housing as part of its recommendations.

Housing minister Kevin Stewart said: “I am proud that we have now delivered over 95,000 affordable homes since 2007 with more than 66,000 of these for social rent. We were on track to deliver our target of 50,000 affordable homes by the end of March 2021, but the impact of COVID-19 has caused a necessary pause to activity.

“We will continue to work with partners across the housing sector to deliver the remainder of these homes, as quickly as it is safe to do so and I look forward to construction resuming in a new safe way.”

Source: Scottish Construction Now

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The Budget: Government pledges investment in housing

In today’s Budget, the new Chancellor of the Exchequer Rishi Sunak announced that the government is investing in affordable housing, will create a simpler planning system and pledged to pay for the removal of unsafe cladding on tower blocks.

Sunak said that a further £9.5 billion has been earmarked for the Affordable Homes Programme, which will bring the total to £12.2 billion of grant funding from 2021-22 to support the creation of affordable homes across England. And local authorities have been given an interest rate cut of 1% on building of social housing.

Plus there will be £400 million for Mayoral Combined Authorities and local areas to establish housing on brownfield land across the country. The aim is to creating more homes by bringing more brownfield land into development.

The Budget also confirmed allocations from the Housing Infrastructure Fund totalling £1.1 billion for nine different areas including Manchester, South Sunderland and South Lancaster.

Another investment to help to stimulate housing and infrastructure growth across the country is an additional £328 million of housing investments in York Central, Harlow and North Warwickshire.

There will also be a new long-term Single Housing Infrastructure Fund to unlock new homes in areas of high demand across the country by funding infrastructure and assembling land for development.

Frank Pennal, CEO of Close Brothers Property Finance Division, a specialist development finance lender, commented: “This Budget is exactly what the doctor ordered for the housing market. It is hugely encouraging to see that the housing crisis has not been totally overshadowed and the government is making good on their manifesto pledge to prioritise housing supply.

“After decades of reduced investment this £12 billion extension of the affordable housing programme should act as a lightning rod to stimulate affordable housing supply.”

Dr Kristian Niemietz, head of political economy at the Institute of Economic Affairs, disagreed and said the Chancellor’s announcements on housing miss the point: “The crucial bottleneck of the housing market is land supply: we are simply not releasing enough land for housing development.

“As long as that bottleneck remains in place, pumping more money into housing construction – whether that is the announced £12 billion for affordable homes, the 1% interest rate cut for loans to build social housing, or the £400m for building on brownfield sites – will simply push up land prices even further. It will therefore ultimately make little difference to housing affordability.

“If the government had the courage to sort out the above-mentioned supply-side bottleneck (on which the Chancellor had virtually nothing to say), it could quite easily improve housing affordability across the board, while saving taxpayers’ money in the process.”

Planning system

The most significant barrier to building more houses is land availability, which is constrained by the planning system. Tomorrow, the Secretary of State for Housing, Communities and Local Government will set out comprehensive reforms to bring the planning system and a Planning White Paper will be published in the spring.

These reforms aim to create a simpler planning system and improve the capacity, capability and performance of local planning authorities (LPAs) to accelerate the development process. If LPAs do not meet their local housing need, the government says there will be firm consequences, including a stricter approach taken to the release of land for development and greater government intervention.

Cladding

The government will also invest an additional £1 billion to remove unsafe cladding from residential buildings above 18 metres, such as the ACM material that was used on Grenfell Tower.

Richard Silva, executive director at one of the UK’s largest professional freeholders, Long Harbour, said this is a huge victory for residents and the industry.

He commented: “It follows an open letter sent to the Chancellor last month, from cladding campaigners, residents, property managers and the UK’s largest freeholders, calling on the government to step in following failures in the building safety regime that dates back decades.

“We are delighted that the Chancellor has listened to the calls from residents and building owners and has expanded the cladding remediation fund, whilst recognising that neither leaseholders nor building owners should have to bear the cost of regulatory failure in the construction industry.

“Freeholders and managing agents have been working hard to fix these buildings as quickly as possible but central funding is essential for the acceleration of this process. We look forward to working with government to make these buildings safe as quickly as possible.”

Stamp duty for non-UK residents

The government will introduce a 2% stamp duty surcharge on non-UK residents buying residential property in England and Northern Ireland from 1 April 2021. The government says this will help to control house price inflation and to support UK residents to get onto and move up the housing ladder.

The money raised from the surcharge will be used to help address rough sleeping and the government will provide £643 million for accommodation and support services to help people off the streets in England.

Rachael Griffin, tax and financial planning expert at Quilter, commented: “As promised during the Tory campaign, a stamp duty surcharge for non-UK resident buyers has been brought in during the 2020 budget. However, Sunak has not quite gone as far at the Tory manifesto pledge and has opted for a 2% rather than 3% charge.

“This represents a crowd pleasing policy which will win over people worried that foreign house buyers are hoovering up UK property as an investment, only to leave it empty, which further exacerbates the housing crisis gripping the nation.

“While this surcharge introduction is welcomed, increasing the UK’s housing stock will have a more important impact for domestic buyers. Planning reforms, set to be announced tomorrow, may reveal additional new measures which aim to stimulate the construction of more housing.”

Richard Donnell, director of research & insight at Zoopla, commented: “The additional 2% stamp duty surcharge for non-UK resident buyers represents the latest in a long series of tax reforms, and may have a short-term impact on demand in higher value markets once it is introduced.

“For those who are looking at a longer-term hold, the additional upfront purchase cost will diminish in significance over time.

“In the interim, however, there will likely be some increased activity among non-UK residents looking to purchase before the new rules come into force.

“Dollar-denominated buyers may find that the additional cost is partly offset by currency movements, with an effective discount of more than 20% for those buying UK property now compared to the summer of 2014 – purely due to movements in the pound.

Disappointment at lack of stamp duty reform for UK residents

Calls for changes to stamp duty went unheard in this Budget and Richard Donnell said that stamp duty has become a southern tax.

He explained: “With SDLT lining the Treasury’s coffers to the tune of £8.3 billion as of March 2019, up from £2.7 billion ten years’ ago, it was always unlikely that the Chancellor would consider a significant stamp duty reform – particularly without an alternative source of revenue.

“Stamp duty has become a southern tax, and is widely regarded as one of the biggest inhibitors to market liquidity in London and the South East – from which 61% of SDLT receipts are generated.

“In keeping the tax bands unchanged and not in line with price inflation, 2.7 million homes have been pushed into the 5% band since 2015.”

By Joanne Atkin

Source: Mortgage Finance Gazette

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New build homes started increased by 24%

The latest quarterly statistics on new housebuilding and affordable housing supply have been released by Scotland’s Chief Statistician.

In the year to end September 2019, 24,873 new build homes were started across all sectors. This was a 4,876 (24%) increase on the previous year and the highest number of homes started since 2007.

Private-led starts increased by 4,516 homes (34%), local authority starts increased by 377 homes (22%) and housing association approvals decreased slightly by 17 homes (0.3%). The total number of homes started across both housing associations and local authorities increased by 360 homes (5%).

The number of new build homes completed increased to 21,805, a rise of 2,972 new homes (16%) on the previous year and the highest number of completions since 2008. There was also a 19% increase in private sector new build homes from the previous year, with 2,668 completed. Housing association completions increased by 230, a 6% increase, while completions for local authorities rose by 74, an increase of 5%.

In the year to end December 2019, 9,317 homes were delivered through the Affordable Housing Supply Programme, an increase of 61 homes on the previous year.

In the same period 11,829 affordable homes were approved, a 6% decrease on the previous year, while 10,765 homes were started, an increase of 4%.

Source: Scottish Government

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Government scheme to cut cost of First Homes by a third

Housing Secretary, Robert Jenrick, has announced plans cutting the cost of some new homes by a third. The First Homes scheme will see a discount locked into the property to ensure more first-time buyers benefit in years to come. Local people unable to afford a home will be able to buy in their area, rather than be forced to look elsewhere by rising prices.

The scheme will lower deposit and mortgage requirements for local first-time buyers in England shaking up the housing market and making the dream of home ownership a reality. The discount will apply to a proportion of new homes, with the government consulting on how this will be delivered.

Veterans will be prioritised as part of Armed Forces Covenant and councils will also be able to use the scheme for front-line workers in their area such as police, nurses, prison officers and teachers.

Housing Secretary, Robert Jenrick, said: “First Homes will be genuinely life-changing for people all over the country looking to buy their first home.

“I know that many who are seeking to buy their own home in their local areas have been forced out due to rising prices. A proportion of new homes will be made available at a 30% market discount rate – turning the dial on the dream of home ownership.

“The discount will be passed on with the sale of the property to future first-time buyers, helping thousands more people in years to come and ensuring local communities can stick together.”

The average price of a newly-built home in England is £314,000. Under First Homes, a property sold with 30% off this price would deliver a £94,000 saving and enable first-time buyers to get on the ladder faster by taking more than £18,000 off a 20% deposit.

The average newly-built home in Cornwall costs £246,000, meaning a 30% discount delivers a saving worth more than £73,000. Areas with particular affordability pressures will see even greater savings with a 30% discount.

The government is committed to delivering more than one million new homes over the next 5 years to further improve the affordability of housing. The proposals published today, which could see tens of thousands of First Homes being built, include measures to help release more land.

More than 240,000 new homes were delivered in 2018-19 – more new homes than at any point in the last 30 years.

And the latest figures show more than 250,000 energy performance certificates being issued to new homes in 2019 – the highest number ever, suggesting further progress being made.

The government is determined to rebalance the housing market to support homeownership through new schemes such as First Homes, building on existing support including Help to Buy equity loans which have helped more than 190,000 people take their first step on the property ladder.

The latest figures show the number of first-time buyers reaching 357,090 – an 11-year annual high and an increase of 84% since 2010 – and the percentage of home owning 25 to 34-year-olds has grown from 36% to 41% over the last 5 years.

Paula Higgins, Chief Executive of the Homeowners Alliance, said: “We know that first-time buyers will welcome the opportunity to buy a good quality home at a discount in their local area.

“We look forward to contributing to the consultation and working with the government to ensure that the scheme does what it says on the tin – more high quality and affordable local homes for current and future first-time buyers.”

The scheme will apply the discount in perpetuity, so when the home is sold in years to come the new local buyer will be able to purchase it at a discount as well.

The measures build on action from the government to make it easier for people across the country to take their first step on the property ladder, including:

  • Consulting on a new national model for shared ownership enabling more people to take their first step on to the housing ladder by reducing the initial share that has to be bought, and then enabling them to take further steps in 1% increments. Instead of having to purchase chunks of 10%. A consultation on these new measures was published in August and the Government will respond in due course with further details.
  • Extending the Help to Buy: equity loan scheme to 2023 and ensuring that developers who work with us meet the standards and quality that customers expect and deserve.

Further information

The government has today launched a consultation on the design of the new First Homes scheme.

To ensure the scheme helps those who would benefit the most, the government is consulting on a price cap on properties available through the scheme, as it has done for Stamp Duty cuts and the new Help to Buy equity loan scheme.

The consultation proposes that current and recent Armed Forces personnel will be taken to have met the local eligibility criteria for First Homes in any local area under any circumstances.

The discount will be paid for through the contributions that housing developers routinely provide through the planning system. These contributions are an established mechanism for ensuring that new developments deliver benefits for local communities. This means that the First Homes scheme will not result in extra building costs.

Source: Property118

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The West Midlands redefines ‘affordable housing’

The West Midlands Combined Authority (WMCA) has redefined ‘affordable housing’ to mortgages or rent costing less than 35% of the lowest quarter of wage earners in the local area.

This replaces the typically used ‘affordability’ definition of 80% of market value.

The West Midlands is the first UK region to introduce a local definition, which is significant because any development schemes receiving WMCA investment from its devolved housing and land funds must make a minimum of at least 20% of the homes in their scheme affordable.

Andy Street, mayor of the West Midlands, who chairs the WMCA, said: “In recent years would-be homeowners have been forced to stand by and watch as house prices outstrip wages.

“The current ‘affordability’ definition is 80% of market value, which for many people in the West Midlands still leaves homes frustratingly out of reach.

“By linking the definition of affordability to local people’s earnings rather than property, and using this alongside our minimum 20% requirement, we can help make the prospect of homeownership a very real one for many more hard-working individuals and families.

“It also sets out a very clear ambition to developers and partners who want to work with us to deliver homes. This is the kind of inclusive growth that is key to building the future of the West Midlands.”

The West Midlands needs to build 215,000 new homes by 2031 to meet future housing and economic demand.

To help reach the target the WMCA has introduced a ‘brownfield first’ policy where new homes and commercial developments are built on former industrial land wherever possible and has secured new funding from national government to help make it happen.

With such sites being notoriously difficult to build on because of the high clean-up costs for developers, and other constraints, the WMCA has committed substantial funding for land purchases and for brownfield remediation so sites can be made viable for development.

A total of 16,938 properties were built in 2018/19 – a 15% rise on the previous year and twice the UK average increase. That compares to just 7,500 homes built in 2011.

Cllr Mike Bird, WMCA portfolio holder for housing and land and leader of Walsall Council, said: “This is another example of how the WMCA and its partners are changing the housing market, using our funding to deliver the homes we need in the places where we need them.

“By building on brownfield land, regenerating local areas, supporting living in town centres and linking affordability to local incomes, we are leading the housing revolution.”

BY RYAN BEMBRIDGE

Source: Property Wire

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West Midlands records highest ever house-building numbers

JUST under 17,000 new homes were built in the West Midlands last year – the most ever recorded in the region.

Figures published by the West Midlands Combined Authority (WMCA) this week show that 16,938 new homes were built in the region across 2018/19, representing a 15.8 per cent increase on the previous year.

The authority currently has a target to build 215,000 new homes by 2031, something it appears on course to do with these latest figures.

However, papers also note that there remains a ‘considerable under supply of affordable housing.’

Last year 3,801 ‘affordable homes’ were built in the West Midlands, representing 22 per cent of the overall total – a figure which meets the WMCA’s 20 per cent target.

But figures also show that this housing ‘is particularly concentrated in certain pockets of the region’ – something which mayor Andy Street says needs to change if the WMCA’s house building drive is to be considered a success.

“Housebuilding is one of the West Midlands’ real success stories of the last few years and I am delighted that we are well ahead of schedule to build the 215,000 homes we need by 2031,” he said.

“The figures clearly show that the West Midlands is leading a brownfield-first housing revolution in the UK.

“What is most pleasing however is we are building the vast majority of new homes on brownfield land, protecting the region’s precious greenbelt. We are doing this through our brownfield first policy, which, thanks to cash from Government, sees the WMCA remediate derelict industrial sites that have sat untouched for decades.

“However there is plenty more still to be done, particularly around the number of affordable homes being built. To help tackle this the WMCA is introducing a new requirement that any housing development that uses WMCA funds must be at least 20% affordable.”

By Tom Dare

Source: Hereford Times

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Affordable green homes in the Scottish Borders could soon be a reality

Warmer, cheaper, more affordable homes is something we all want, and this could be a reality as Eildon Housing look at future house building and its impact on the environment.

They are investing millions of pounds as part of their strategy to make sure everyone has access to somewhere they can call home.

The need for affordable housing in the Borders has hit an all-time high, with recent figures showing, on average, 17 people bidding for every home that becomes available.

To meet this need it is important to be able to build a house quicker and make it cheaper to heat and therefore eradicate fuel poverty especially in rural parts of the Borders reducing our use of fossil fuels.

An exciting building project will start construction in the New Year that they hope will tick all those boxes as they look to test different construction methods across four new sites.

Working in partnership with Scottish Borders Council, Construction Scotland Innovation Centre (CSIC) and Glasgow School of Art (MEARU) the new developments will be part of a study to compare construction costs, time to build, living quality, and whether the homes are financially viable to build.

The developments at Westruther, Broughton, Denholm and Innerleithen will see up to 50 new green homes built and will test different building methods from Passivhaus, Energiesprong, Volumetric and the traditional build we’re all used to.

Potential new tenants will be heavily involved in the study for a period of time when they move in, as the results will be used to determine not only the future building programme for Eildon, but also lead the way for how Scottish homes are built and lived in, in the future.

By DAWN RENTON

Source: Scotsman

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UK house prices near record high for new homes on market

UK house prices for newly-marketed properties neared a record high this month, spurred on by a cluster of UK regions shrugging off recent political uncertainty.

Four northern regions witnessed their highest ever asking prices in June, pushing property prices nationally up 0.3 per cent to just £91 below June 2018’s record figure of £309,439.

According to Rightmove, the regions of East Midlands, the North West, Wales and Yorkshire & the Humber all enjoyed record asking prices.

That is despite newly-marketed houses in the capital falling in price by an average of 0.4 per cent this month.

“More buoyant markets in the north and midlands are helping to nudge up prices due to the seemingly relentless strength of buyer demand,” said Miles Shipside, Rightmove director and housing market analyst.

“Buyers in four regions are seeing higher new seller asking prices on average than ever before.”

In London, Shipside blamed a combination of stretched affordability, moving costs including stamp duty and Brexit uncertainty for the 0.4 per cent drop in the capital, where prices in June have fallen for the last three years.

Brian Murphy, head of lending at the Mortgage Advice Bureau, said: “The complex current market dynamic is driven by varying levels of consumer sentiment.

“One might suggest that those areas which are seeing more ambitious asking prices are somewhat insulated from the ongoing turbulence at Westminster – that or buyers and sellers in those areas are opting to ignore the headlines and carry on regardless, according to their personal circumstances.”

The scale of the UK’s housing problems were underlined this morning, with new research showing that less than one in 10 towns offer affordable property for nurses, teachers, paramedics, police and firefighters.

Some eight per cent of towns offer affordable housing for key public sector roles, tumbling from 24 per cent five years ago.

Central London remained the least affordable area, while the top three most affordable towns in Britain for key workers are all in the north west.

Halifax, which produced the results, said the gap is due to UK house prices outpacing earnings growth for public sector workers.

Average house prices have risen by 32 per cent compared to key worker average annual earnings growth of seven per cent.

By Sebastian McCarthy

Source: City AM

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New Wrexham developments feature as part of £63m affordable housing plans across region

A social housing provider has unveiled plans for new developments in Wrexham County Borough.

Clwyd Alyn says it is set to create 380 affordable, sustainable homes for local people across the region costing around £63 million.

The developments have been financed with £37 million of Welsh Government funding secured in partnership with local authorities, together with private finance arranged by Clwyd Alyn.

In Wrexham this involves new developments in both Pontfadog and the Brymbo areas.

Clwyd Alyn, which currently manages over 6,000 homes and employ more than 700 people across seven county areas, completed a total of 277 new homes and one community hub in the last financial year, including 200 specialist extra care apartments across North Wales.

Locally this includes Maes y Dderwen, a million pound extra care housing scheme for older people in Wrexham, which welcomed its first tenants in 2018.

Located on Grosvenor Road near the town centre, it is specifically designed for local people aged 60 or over who wish to live independently in a home of their own with the peace of mind of 24-hour access to care support.

The total number of homes developed by the organisation over the last two years, combined with those currently being built, or proposed for the years ahead, represents a total investment of £221 million covering the creation of a of 1,435 homes.

Commenting on both current and future developments locally, Craig Sparrow, executive director of development for Clwyd Alyn said: “In Wrexham County last year we completed Maes Y Dderwen, a state-of-art extra care development with 60 apartments, promoting independent living for older people and we’ve recently also welcomed new residents to a development of 50 general apartments in Rivulet Road.

“We’re also currently creating new homes in Pontfadog and we are proceeding with proposals for 70 homes in Brymbo.”

Clare Budden, group chief executive of Clwyd Alyn added: “We know there is a significant shortfall of social and affordable housing across Wales, with increasing levels of homelessness, growing waiting lists and too many people living in poor quality and short-term housing.

“We are working in partnership with local authorities and other agencies and working hard to deliver our mission; – ‘Together to beat poverty.’

“We firmly believe that by building new affordable homes, working in partnership, and through delivering a range of support services, we can encourage and help people to live well and build their own strong communities.

“We have a total of 792 homes either completed during the last two years, in progress, or about to start on site. We have proposals for another 643 homes for the years to come, representing an overall investment total of £221 million and 435 homes.

“We would like to thank the Welsh Government and all our Local Authority partners from across the region for their support in helping us to provide these vital homes bringing hope and joy to local people for generations to come.”

Source: Wrexham

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Affordable housing finance scheme relaunches to help people at risk of homelessness

A Community Benefit Society working to end the housing crisis by providing affordable and emergency housing to people who need it most is launching the second round of its secure property-based financing arrangement.

Providing an “ethical alternative to buy-to-let”, Reap from Equfund sees ethically minded investors lend their money to provide decent, safe, and affordable housing for people at risk of homelessness.

Reap invests in property to provide affordable rental homes for people in housing need. Every acquisition is rigorously assessed to ensure it can provide a durable and reliable cash income stream for investors. The management of the property is handled entirely by Equfund.

With a minimum investment of £15,000, investors will receive a fixed monthly income (from the rental income) with a flat interest rate of 3% per annum without the associated risks, responsibilities and inconveniences of being a landlord. 100% of the original lump sum is returned to the investor after five years, and the invested amount and their monthly income is unaffected by voids or (maintenance costs) if the property requires maintenance.

The first round of Reap raised over £3,750,000 when it first launched in 2015, double the target amount. In this second round, Reap has transitioned from primarily investing in and refurbishing long-term empty homes to acquiring properties that are ready to move in. This transition, which was brought about by the worsening housing crisis in the UK, allows the company to act with greater speed in providing housing for those most in need and to allocate more investors’ funds against property.

Reap protects investors’ money by only borrowing 85% of the property value and the loan is registered against property at HM Land Registry much in the same way a mortgage is

Unlike many other property schemes, there are no fees involved and Reap guarantees to secure the investment against UK property and does not rely on property price growth to generate an income for investors. Each property has its open market value assessed by an independent chartered surveyor, and investors can arrange to visit a property prior to allocating their funds against it. For further security, and to limit exposure to any single property or locality, investors can request to have their money split and lodged against more than one property.

Reap actively rents to tenants in receipt of Local Housing Allowance or Universal Credit, with the belief that doing so is an important step in breaking the cycle of housing poverty caused by rampant discrimination of people in receipt of housing benefits. Reap goes as far as to assist LHA tenants with the paperwork required to claim their correct allowances and will help to submit this to the local council on their behalf.

Andrew Mahon, director at Equfund, said: “With the government seeking to gain more control over the private rented sector, the buy-to-let market has become progressively complex over the last 12 months, and the next 12 months will see yet more considerable changes to the sector. Investors no longer see much sense in putting their hard-earned money into a market that increasingly offers less rewards and more headaches and exposes them to great risk if they’re not fulfilling all of the new regulations.

“With Reap we’re offering a viable alternative to this broken system that not only tackles the growing housing crisis in the UK with a long-term solution, but also provides a stable and predictable income for socially responsible investors who still want to have a slice of the property market.

“We’re proud of the work we’ve done. We have a proven track record over the last decade in addressing the housing crisis with ethical and sustainable solutions. This second round of Reap will turbocharge the all-important work we do of putting a roof over the heads of those who most need it.”

Source: Scottish Housing News