The Government must make changes to help smaller housing organisations purchase and develop land for affordable housing schemes, says the YMCA.
In a report titled Unlocking Affordable Homes, the charitable organisation has called on the Government to help remove the barriers to local YMCAs building homes for vulnerable young people.
The increased base rate from the Bank of England has made borrowing even more prohibitive for small house builders, reported the YMCA, while the current system of planning approval and grant funding makes the process too long and risky.
“As a YMCA working across London, embedded within the community, we see all too acutely the lack of affordable and acceptable housing for young people in need,” Richard James, CEO of YMCA St Paul’s Group told Homes and Property.
“A lack of accommodation options leads to young people being exposed to rogue landlords.”
“A lack of accommodation options leads to young people being exposed to rogue landlords, poor quality conditions and the threat of a cycle of rough sleeping and hidden homelessness.”
The private rental sector is particularly brutal for young people on low incomes, warned the report, as they struggle with the increasing costs of rental deposits and monthly costs. Young people under the age of 21 receive a lower minimum wage, and those under 25 are on a lower rate of universal credit.
"Addressing the housing crisis with affordable homes requires a concerted effort from all sectors of society," said Denise Hatton, Chief Executive of YMCA England and Wales.
“The path to delivering affordable housing is far from easy."
"While we are committed to playing our part in providing much-needed housing, we cannot ignore the challenges that come with it. From cumbersome planning processes to financial constraints, the path to delivering affordable housing is far from easy."
To help them build more affordable homes for young people, the YMCA report has made six recommendations to the government.
More Government funding for land acquisition by organisations looking to build 100 per cent affordable housing needs to be made available, said the YMCA.
Currently, local wings of the group struggle as they do not have sufficient cash reserves or the assets to borrow against to fund these costs.
Local authorities should be given the funding and authority to fast-track planning applications for affordable housing projects, said the YMCA, and should also be required by the Government to consider the housing needs of young people as a separate category.
“YMCA has a track record in innovation in delivering truly affordable housing.”
Three of the six changes requested by the YMCA focus on Homes England, the government agency that funds affordable housing in England.
To address barriers in the application process and funding requirements, Housing England should develop a seperate, simpler application stream for smaller affordable housing providers, said the YMCA.
Grant rates should be higher and more flexible for schemes delivering 100 per cent affordable housing, with more funding from the Government, added the organisation. Currently, the final 25 per cent is only provided after completion,
Grants from Homes England should also depreciate over time, said the YMCA.
“YMCA has a track record in innovation in delivering truly affordable housing, including the 100% affordable, award-winning Y:Cube scheme in Mitcham, London,” said James.
Designed by Rogers Stirk Harbour & Partners and completed in 2016, the Y:Cube is a development formed of self-contained pre-fabricated studio homes that can be easily plugged in to existing mains facilities, making them well-suited to brownfield site development.Rent for the 36 units is set at 65 per cent of market rate.
“We look to the Government to make the changes, as outlined within this report, that will enable more schemes like Y:Cubes to be built within London as a vital link in the chain for young people who are setting out in life,” added James.
“Without the changes that YMCA is calling for we will continue to see the gap grow and issues increase and, ultimately, a continuation of the housing crisis that is plaguing our communities.”
