A more “expansive concept” of the cost rental model, which is not “overly reliant on public funding” must be considered, the Minister for HousingMr O’Brien said “alternative funding streams” such as the European Investment Bank and international pension funds may play a “central role” in the delivery of cost rental homes into the future.
The scheme allows for long-term loans on “favourable terms” made available to approved housing bodies to cover up to 30 per cent of the development or acquisition cost of new cost rental homes.and that he will be bringing the Affordable Housing Bill, which contains extensive provisions to place cost rental on a statutory basis, to Government “very shortly”.
“One that can deliver cost rents to a wider group, can maintain the delivery of housing in a counter reciprocal way and that can lead to provision of homes at sufficient scale to mean that cost rental can have an impact on rents across the wider sector. “To this end, I intend to include provisions in the legislation that facilitate equity returns but that allow for those returns to be capped at acceptable rates. Alternative funding streams, such as the European Investment Bank, international pension funds and other parties interested in this long-term and sustainable form of housing may play a central role in the delivery of cost rental homes that scale into the future.
Will we ever learn. 🙄