Wednesday, 8 June 2011

Places for People

Places for People is a non-profit social housing group with 62,000 homes under management. Places for People is offering a bond (Minimum investment £2000) paying an interest rate of 5% for five and a half years thereby using the capital to build more social housing/affordable homes because of the reduction in social housing grants from central government. Places for People manage homes throughout England with subsidiary companies managing homes in Scotland.

Despite being tempted by this excellent investment opportunity I would still rather invest in housing association in Wales i.e Tai Clwyd or Pennaf or even through an umbrella association like Community Housing Cymru (CHC); but are we allowed to buy bonds in Welsh Housing Associations?. Also is there a reason why Local Authorities in Wales cannot sell bonds to bring their housing stock up to the Welsh Quality Housing Standards? Wrecsam Council for example would be able to pay a very competitive interest rate from the £11 million of social housing rents that it gives away to the Treasury EVERY year to subsidise shortfall in the budgets of London Borough's.

We read that Carwyn Jones has been to London today to meet with Cameron and others in the Joint Ministerial Committee where the First Minister raised the issue of Barnett and fair funding, let's hope he remembered to mention the housing subsidy as well.

We need some innovative ideas to raise money for housing in Wales before we are faced with another crisis, will the government deliver?


Jac o' the North said...

The real task in Wales, especially rural areas and smaller towns, is to ensure that locals are given priority in social and affordable housing, otherwise we just go on building for a never-ending demand from outside Wales.

I bet that the existing council and housing association stocks in these areas is already enough to cater for today's internal demand, if only the properties were allocated to locals.

Plaid Gwersyllt said...

I appreciate your knowledge on this Jac but what do we need to do to address it?

Jac o' the North said...

Have responded with posting

Plaid Gwersyllt said...

seen it thanks.