In advance of the last Budget of this Parliament on 18 March, the BSA has written to the Chancellor of the Exchequer asking for urgent and concerted action to help home buyers - particularly younger buyers.
We have suggested that there is an opportunity for the money that is raised by the Government from the sale of the NS&I 65+ Pensioner Bonds, estimated to reach £15 billion by the current closure date of 15 May, to be used to off-set the initial investment in housing projects. Specifically, we have suggested that this money could make a lasting difference if it was used as seed funding for perpetually affordable housing developments using a model such as a Community Land Trust.
The letter to the Chancellor also trails the launch of BSA proposals to help fix the UK's dysfunctional housing market on 16 March.
Commenting, Robin Fieth, Chief Executive of the BSA said. "Using the money raised from the Pensioner Bonds to make affordable housing available to young people seems a neat way for a scheme that benefits those 65 and over, to also help younger people who face such a chronic shortage of affordable housing."
Notes to Editors
- Figures from the Bank of England published on 2 March 2015 show that In January NS&I had a net increase in balances of £6.6 billion. At the same time banks and building societies had net decrease in balances of £8.2 billion. On February 8, HMT reported that there had been deposts of £7.5 billion into the bonds. These figures suggest that most of the deposits into pensioner bonds came from outside NS&I rather than being internal transfers.
- A Community Land Trust is a not-for-profit organisation which serves as a mechanism for holding land and property for the benefit of present and future generations in a defined locality or community.
In the Housing and Regeneration Act 2008 CLTs are defined as a corporate body “established for the express purpose of furthering the social, economic and environmental interests of a local community by acquiring and managing land and other assets in order— (a) to provide a benefit to the local community, and (b) to ensure that the assets are not sold or developed except in a manner which the trust’s members think benefits the local community.”
The first Community Land Trust was originally set up in the 1970s in the US, drawing upon the land gift movement in India, the Jewish National Fund in Israel and the Garden Cities movement in the UK.
The National CLT Network was set up in 2010 to promote CLTs: http://www.communitylandtrusts.org.uk/home
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