Sim Kiang Chiok’s Post

“Other than the LIHTC, federal support for housing currently comes in the form of mortgage tax relief. Mortgage tax relief cost the treasury $70–$100 billion in 2019, and the estimated cost of the LITC was $8 billion in fiscal year 2019. In the mid-2000s, a presidential advisory panel, headed by former Senator Connie Mack, recommended limiting the mortgage tax deduction to loans of up to $313,000 instead of the then-ceiling of $1 million, which benefits wealthy homeowners far more than low-income ones. The limit was subsequently reduced to $500,000. Most European countries (the U.K. included) have eliminated any mortgage tax credit for homeowners. While it’s politically unrealistic to expect the U.S. to follow suit, it may be possible to free up as much as $30 billion annually simply by restricting the mortgage tax credit to those most in need and/or to first-time home buyers. With redistributed mortgage tax relief and LIHTC funds, it would be possible to use supply-side subsidies more effectively. Rather than providing tax cuts for the wealthy, the federal government could repurpose that money for housing production. Funds from the subsidy could be allocated to the states instead of continuing with the inefficient LIHTC program. It may be possible in the U.S. to convert PHAs to not-for-profit housing associations freed from the constraints of HUD and thus operating more freely in the marketplace. With access to low-interest loans or direct grants (making more efficient use of LIHTC funds), PHAs would be free to act as the housing authorities in Europe have done. Mixed-income developments would move new development away from the current “warehousing” of poor families and toward a model with a broader range of incomes that would more closely reflect the demographics of the community. The current dearth of affordable rental housing would be addressed, and capital would be available to improve and preserve the existing public housing stock. These revisions might just become a cogent and successful federal housing program.” Alexander Gorlin Victoria Newhouse Viren Brahmbhatt David Burney Rizzoli International Publications https://lnkd.in/evgfUwkk

I read with interest CMHC article on the complexity of housing issues & how they intertwine with income, productivity & other public policy issues. I often read CMHC information and guidance for the housing sector, but I rarely see published analysis of the impact of federal policies, taxes and services on the Canadian housing market. I hop future publications will take a detailed and critical look at federal impacts on the housing market, including things like the cost of the quasi-monopoly CMHC has over the mortgage insurance business, the 33 year delay in updating the New Home GST tax credit or the inflationary impact of high interest rates on housing costs (and the overall inflation rate). There are many areas of federal impact on the housing sector and we need more information, policy alternatives and public debate about the federal role in the housing sector.

'Hundreds of millions owed in rental debts to councils, and arrears on the rise.' Our research on rental arrears in social housing has been featured in The Independent. Our data shows a significant increase in rental debts owed to councils, with arrears up 8% from 2019 to 2023. Financial impact: - Over £240 million owed in rent arrears to 82 local authorities - Total debt could reach £650 million across all 221 councils with social housing This research highlights the growing pressure on both councils and tenants. Find out more here: https://ow.ly/8UKJ50Tz4oP #SocialHousing #RentalArrears #HousingCrisis #LocalGovernment

Fantastic research by the Access PaySuite team which has been picked up by The Independent, highlighting the growing issues faced by social housing tenants and local authorities: "Freedom of Information (FOI) data from 82 local authorities - around a third of the number of councils which own social housing - shows more than £240m was owed in rent arrears in June/July this year, when councils responded to the survey. This is up from £147m owed in 2019, according to new analysis from payment specialists Access PaySuite." #SocialHousing #RentalArrears #HousingCrisis #LocalGovernment

The government has made the difficult but right decision to end the First Home Grant scheme and reprioritise the money towards social housing. Budget 2024 will allocate $140 million in new funding for 1,500 new social housing places to be provided by Community Housing Providers (CHPs), not Kāinga Ora. The places will start to become available from July 2025 onwards, giving the community housing sector much-needed certainty about the social housing pipeline, allowing them to plan for the future, and scale-up their build programmes. I realise this won't be very popular, but the First Home Grant, which provides eligible first home buyers with a median of $5,000 towards a house deposit, is an expensive and inefficient way to support first home buyers. Evidence shows the grant brings forward the purchase of a first home – but in most cases it does not make a difference to whether someone can buy a home or not. The answer to New Zealand’s housing crisis is not demand-side measures like the First Home Grant, but supply-side solutions contained in the Government’s Going for Housing Growth agenda.

The government should prioritize policies that help people buy their own homes because higher homeownership rates lead to safer, more invested, and cohesive communities. Owning a home brings stability and wealth, which can reduce crime by addressing issues like poverty. While social housing is important, the primary goal should be to increase homeownership rates above 90% for a stronger society.

The National Residential Landlords Association has called for housing benefit rates to be permanently linked to the bottom 30% of rents during the duration of the next parliament. During the last parliament the Local Housing Allowance (LHA) rate stayed at April 2020 levels until April 2024, causing market rents to get increasingly detached from the amount people could claim. According to the Institute for Fiscal Studies, this led to just 5% of private rental properties being affordable for those in receipt of LHA. Ben Beadle, chief executive of the National Residential Landlords Association, said: “It is time to fix the broken housing benefit system once and for all. The lack of clarity about support in the future is causing insecurity and anxiety for renters and landlords alike. It undermines efforts to sustain tenancies and prevent homelessness in the first place. Jimmy Baillie #Ukpropertynews #ukproperty #realestate #financialgoals #buytolet #financialintrdusty #ukbrokers #buytosell #investors #taxes #bankloans #mortgageproperty #mortgage #businessdevelopment 

CPAG and Public Housing Futures created A People’s Review of Kāinga Ora to tell a different story about public housing and the important role it plays in providing stable and truly affordable homes to people, and thriving communities. The groups have also analysed Kāinga Ora’s finances, to help understand the reason the agency was in debt. Kāinga Ora was forced to borrow and sell off land in state housing neighbourhoods in order to pay for years of neglect. Kāinga Ora, under the previous government, began to build houses again and it is important to maintain this in order to achieve a greater presence of public rental housing in the housing landscape. "If we put things into perspective, the debt that Kāinga Ora has is essentially an accounting convention. The government could have funded it as equity. This debt is Government-backed so its current level is unlikely to concern financial markets, and its so-called sustainability depends entirely on a political choice by the Government to support Kāinga Ora and its operations", says Alan Johnson, housing spokesperson for CPAG. The Government has already announced plans which skew demand through increasing evictions, forcing people in emergency housing into private rentals, and suggesting even more landlord subsidies. At the same time, all over the country, Kāinga Ora developments have been put on hold, postponed, shrunk, reconsidered or cancelled. "Public housing provides stable and secure homes for people so they can put down roots in a community and be able to participate more fully. Making public housing marginal and temporary will lead to more people being forced into an expensive and insecure private rental market, and increase homelessness," says Cole. Read the A People’s Review of Kāinga Ora here: https://lnkd.in/gvKMuqRc Read the review of Kainga Ora’s financial position here: https://lnkd.in/gjwwtjFQ

Great article with Alan sharing his wisdom.

⭐Significant Boost for Housing Expected in Upcoming Budget⭐ Reports suggest that nearly £1 billion will be allocated to housing in next week’s budget, with a focus on a “council housing revolution.” Angela Rayner, Secretary of State for Housing, Communities, and Local Government, is expected to direct this funding towards increasing council housing supply. There is also speculation that she may target the ‘Right to Buy’ scheme, which allows tenants to purchase their social homes. The budget, set to be delivered by Chancellor Rachel Reeves on 30 October, is the first for the new government. The move comes after warnings from key housing organisations—including The Home Builders Federation, Savills, and the National Housing Federation—that significant support is needed if the government’s housing development targets are to be met. They’ve highlighted the challenges posed by the current market conditions, with high interest rates impacting mortgage availability for first-time buyers. Initial reports suggest that between £500 million and £1 billion will be released to jumpstart social housing projects, with additional funds anticipated in next spring’s spending review. This funding boost is set to complement the Affordable Homes Programme over the next 18 months, marking a key step in Labour's plan to deliver 1.5 million homes over five years. While the Ministry of Housing, Communities, and Local Government has yet to comment, Rayner has consistently underscored the importance of council housing in addressing the UK's housing shortage. In a letter to local authority leaders this summer, she reaffirmed Labour’s dedication to social and affordable housing, with more details expected in the upcoming budget announcement.