'Generation Rent': G15 London Housing Associations to build 13,000 affordable homes by 2015

This blog recently focused on how journalists created ‘Yuppies’, ‘Dinkys’, ‘High Net Worth Individuals’ and ‘Chavs’ to caricature whole sections of society, writes London journalist Paul Coleman.  

   Now, there’s ‘Generation Rent’, a new group invoked by housing professionals and eagerly echoed by headline writers.

   Yesterday, (4 March) London’s 15 biggest housing associations vowed to build 13,000 ‘affordable’ homes by 2015 for ‘Generation Renters’ – Londoners in their 20s and 30s on average and even higher incomes. These people can’t raise the average £98,000 deposit they need to buy a decent family home in London.

Profit motive

The ‘G15’ group of housing associations also aims to provide some 5,100 properties for rent at market prices offering secure tenancies. G15 associations will use profits from rents to fund more ‘affordable’ homes.

   Apparently, a G15 board paper says: “The average home in London costs more than £400,000 and is 15 times the median income for Londoners…Those without access to capital may become lifetime renters.”

   But are G15 affiliates moving into mainstream 'for sale'  and 'for rent'  property markets at the expense of their social mission to provide 'affordable' homes for those in genuine need? 
  G15 chair and Affinity Sutton housing association chief executive, Keith Exford, said: "The only profit to be made is from the sale of stock at a later stage as values rise. A well-managed, reputable private rented sector is an important part of our offer to London."

Paul Coleman, London Intelligence, March 2013