“If the SME sector is not supported, it is going to go extinct,” says Mr Rickard, pointing out that the previous government spent billions on the Help to Buy scheme, where it effectively gave first-time buyers cash grants at the point of purchase.
He says the government could instead redirect that money towards social housing. “You can’t have subsidised housing without subsidy,” he says.
Partnership has its faults too, though. While Pocket Living homes meet the official definition of affordable, 80% of market value is still out of reach for many people.
Mr Rickard calculates that two decades ago when the developer started building, around 40% of its target market could afford Pocket Living homes. Now, he thinks the figure is less than 8%.
Some homes have been built that are more affordable, with prices based on local incomes rather than market value, which Pocket Living can deliver because of its “relatively low margins”.
However, the company still has to consider what makes sense from a business perspective. “There comes a point where a scheme is just not deliverable,” says Mr Rickard.
In short, there are downsides to all of the standard housing delivery ideas: changes to the planning system only do so much, social housing costs money, and private developers need to make a profit.
https://www.bbc.com/news/articles/cvgw7x4y5rzo,
GO TO SAUBIO DIGITAL FOR MORE ANSWERS AND INFORMATION ON ANY TOPIC
