AFFORDABLE HOMES
The increase in house building does not reduce house prices, and does nothing to address the inequality that, according to the Centre for Cities, has marked Cambridge out as the most unequal city in Britain. Inequality creates "pernicious effects…eroding trust, increasing anxiety and illness, (and) encouraging excessive consumption". There is also evidence that overseas investors number amongst the purchasers of new homes in the area, which contributes to the housing cost crisis.
The plan states that 40% of the new housing stock will be ‘affordable’ (currently 80% of the market price). As the average house price in Cambridge is around £500,000, this would mean an ‘affordable’ house would cost £400,000, clearly well beyond the reach of first-time buyers without substantial independent savings or inheritances/parental donations. Of these new homes, it is stated that 75% will be social rented (75% of 40% = 14,400). While this is welcome, current dominant forms of social housing are built by the council (or at least by a public-private partnership) or housing associations. These rental homes can be purchased under right-to-buy legislation after 5-10 years, and many are sold on very quickly. According to The Independent, 40% of housing sold through the right-to-buy scheme are now private rentals. There have to be more imaginative ways to address the housing crisis for first-time buyers and those on low-moderate incomes (housing co-operatives, community land trusts etc) that guarantee that these homes are not subject to sale and cost inflation. Those in existing social rented homes urgently need their homes to be retrofitted to high energy efficiency standards (Cambridge City Council has acknowledged by supporting nef’s Great Homes Upgrade campaign). Further, a great deal of housing units in Cambridge that would suit first-time buyers trying to get into the housing market, are frequently snapped up by buy-to-let landlords, which makes it even more difficult for people to escape the rental-trap.