LIVERPOOL Mayor Joe Anderson today announced what he described as “the biggest and boldest house building programme probably in Europe”.
Joe the Mayor will become Joe the Builder with his scheme for 10,000 houses - if he is re-elected next month
He has pledged to launch a new council-owned housing company to “tackle inequality and address affordability” with no-deposit houses for purchase.
This move will put us in the driving seat, helping address market failure... as well as creating a new income stream for the council and jobs
It will directly compete with private developers to meet housing needs across the city, the mayor says in his announcement.
Mayor Anderson’s proposal will see a Local Authority Housing Company (LAHC) established which will develop publicly owned land and assets for the delivery of new housing. It will also acquire new sites and existing housing, selling and renting homes on a purely commercial basis.
As part of his plan, Mayor Anderson wants to develop a Liverpool version of the rent-to-buy and shared-ownership schemes to help struggling renters get onto the property ladder.
The company will not seek to compete with registered social landlords who provide social housing, but directly with private sector developers in order to better address need in the housing market.
The pledge will be one of the key planks of Mayor Anderson’s personal manifesto ahead of next month’s mayoral election in Liverpool.
Mayor Anderson said: “I will promise to build 10,000 new homes over six years, starting in January 2017, using a transformational rent-to-buy model. No deposit will be required, all we ask is that new owners sign up to a deal to rent the property for a minimum of five years, but they can also take 10 or 15 years if they wish."
He went on: "We will use part of their rent and the increased value of the property over their rental period to use as their deposit. I am also seeking Government involvement to take advantage of their Help to Buy initiative as this could also provide additional help although the scheme is not dependent on it."
“I want to get on with it, using brownfield land in the city. It's the biggest and boldest house building programme probably in Europe. It's a scheme that meets the demand we know is there and for people coming here it will dramatically improve the quality of housing and neighbourhoods.
“Too often local councils have found themselves in the role of bystanders, unable to shape the housing market to address local demand and to tackle inequality. The creation of a local authority housing company will help us gain greater control over build rates and direct the type and timescale of development we need.
“This move will put us in the driving seat, helping address market failure, drive up private landlord quality, deliver new routes into affordable home ownership, as well as creating a new income stream for the council and jobs."
Mayor Anderson added: “It will help us to address issues around the provision and quality of homes in the city, as well as creating jobs, apprenticeships, supporting local businesses and tackling the issue of affordability.
“We have seen what happens when the property market is left to pure market forces: massive inequalities set in that make it so difficult for millions of families to even contemplate getting on the housing ladder. I am determined to do something about this.”