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London’s conservative mayoral candidate has sparked controversy after suggesting that homeless people in the capital could save up to a £ 5,000 deposit to buy a share in a newly built affordable house.
Shaun Bailey has promised to deliver 100,000 affordable homes with his £ 4bn housing budget if he wins the election in April, many of them in shared ownership, of which buyers could buy a share for as little as £ 100,000.
When asked in an interview with Inside Housing how this policy would benefit the capital’s 62,670 families currently in temporary housing, Bailey said it would encourage them to apply for joint-ownership properties.
When asked how these families would produce a £ 5,000 deposit and secure a mortgage, he said: “I don’t think the £ 5,000 [be a problem]. The mortgage application could be a bit more difficult … they could save, yes. “
Pressed by the interviewer as to whether he was suggesting that a homeless family on a bed and breakfast basis could pay a deposit, Bailey replied, “Not everyone, but some people do. A whole proportion of people could do it. “
He added: “I know that situation, I surfed on the couch for years. You’re right, I definitely couldn’t have found £ 5,000, but I’m not expecting or asking for those people. We will provide them with social housing. “
Bailey, 49, said his intention was to build 100,000 affordable homes of all tenures in the capital, with shared ownership accounting for the largest proportion. This would “help Londoners to achieve a ‘stake’ in the city and serve those whose incomes are too high to qualify for social housing but cannot yet afford to buy in the city.
Shared ownership involves residents obtaining a mortgage for a 20-75% stake in a new home, often developed by housing associations, and renting the rest.
Although it’s considered a way to give first-time buyers a foot on the property ladder, there are drawbacks as well, including annual service charges.
Bailey’s comments drew widespread bewilderment on Twitter. Liberal Democrat Councilor and London mayoral candidate Luisa Porritt said: “My God, the conservative candidate is back. This time he suggests that homeless families ‘save up’ for a deposit. How out of touch can you be? “
Lambeth Labor Counselor Ed Davie tweeted: “It is known that people living in poverty tend to have at least £ 5,000 lying around; It is surprising that it did not occur to them to simply buy property in London, which are well known for being really cheap. Thank goodness the older Tories are here to give this good advice. “
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