Affordable Housing - Affordable Housing By Country - United Kingdom - Council Houses

Council Houses

A high proportion of homes in the UK were previously council-owned, but the numbers have been reduced since the early 1980s due to initiatives of the Thatcher government that restricted council housing construction and provided financial and policy support to other forms social housing. In 1980, the Conservative government of Margaret Thatcher introduced the Right to Buy scheme, offering council tenants the opportunity to purchase their housing at a discount of up to 60% (70% on leasehold homes such as flats). Alongside Right to Buy, council-owned stock was further diminished as properties were transferred to housing associations. Council Tenants in some instances have chosen to transfer management of the properties to arms-length non-profit organisations. The tenants still remained Council tenants, and the housing stock still remained the property of the Council. This change in management was encouraged by extra funding from central government to invest in the housing stock under the Decent Homes Programme. The program required council housing to be brought up to a set standard was combined with restrictions on the amounts that councils could borrow and led to an increase in such arms length management organisations being set up. In some areas, significant numbers of council houses were demolished as part of urban regeneration programmes, due to the poor quality of stock, low levels of demand and social problems.

In rural areas where local wages are low and house prices are higher (especially in regions with holiday homes), there are special problems. Planning restrictions severely limit rural development, but if there is evidence of need then exception sites can be used for people with a local connection. This evidence is normally provided by a housing Needs survey carried out by a Rural Housing Enabler working for the local Rural Community Council.

Housing associations are not-for-profit organisations with a history that goes back before the start of the 20th century. The number of homes under their ownership grew significantly from the 1980s as successive governments sought to make them the principal form of social housing, in preference to local authorities. Many of the homes previously under the ownership of local authorities have been transferred to newly established housing associations, including some of the largest in the country. Despite being not-for-profit organisations, housing association rents are typically higher than for council housing. Renting a home through a housing association can in some circumstances prove costlier than purchasing a similar property through a mortgage.

All major housing associations are registered with the Homes and Communities Agency who are responsible for the regulation of social housing from 1 April 2012. Housing associations that are registered were known as Registered Social Landlords from 1996, but in the Housing and Regeneration Act 2008 the official term became Registered Providers; the latter also covers council housing as well as developers and other bodies which may receive grants for development. The Department for Communities and Local Government sets the policy for housing in England. In Scotland policy is set by the Scottish Parliament; inspecting and regulating activities falls to the Scottish Housing Regulator. Social housing in Northern Ireland is regulated by the Northern Ireland Housing Executive, which was established to take on ownership of former council stock and prevent sectarian allocation of housing to people from one religion.

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