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Affordable housing in the spotlight

Affordable housing is not immune from the downturn and the government is looking at ways to boost it and increase the number of homes available to buyers who are unable to purchase on the open market.

Affordable housing output has suffered as a result of the economic situation. For all planning applications, house builders must ensure that 40% of homes are affordable. But if they are not building private homes, they’re not building affordable ones either.

The government has made much of its commitment to provide new affordable homes. The Housing Corporation says its £8.4bn National Affordable Housing Programme will provide 155,000 new properties between now and 2011 – almost double the rate achieved in 2006 and 2007. It will be embarrassing if this target is missed.

This means we can expect to see Whitehall taking further steps to help the construction industry. It has already pledged £13m to buy unsold houses from developers to use as affordable homes.

But it is essential that more lenders become involved in shared equity or ownership finance rather than sitting back, stockpiling funds and doing nothing to get the market moving.

The government is committed to shared ownership schemes and it is likely that funding for them will increase.

And tighter lending criteria and lower LTVs for first-time buyers mean that even more of them will turn to shared ownership schemes despite falling prices.


Action is better than inaction

In recent weeks we have seen a number of legislative changes designed to reduce the number of repossessions.

AMI surprised by dire CML predictions

The Association of Mortgage Intermediaries says it is taken aback at the severity of the Council of Mortgage Lenders’ predictions for lending levels next year.

Computer says NO

The weekend’s FT Money section had an article headed ‘Borrowers refused best rates’, focusing on good quality clients being turned down for stupid reasons, a problem which is escalating.

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Infographic — health cash plans 2014

Health Shield has strengthened its position in the cash plan market, according to the latest Laing & Buisson report, increasing its market share by income from £27m in 2012 to £29m in 2013. The Health Cover UK Market Report 2014 revealed that the non-profit-making Friendly Society was the only provider in the top four to have increased its market share by income over the past year. Health Shield was also the only cash plan provider in the top four to have increased its market share by income every year for the previous five years. This infographic presents the figures.


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