The government has launched a new housing strategy to cope with the requirements of our aging population.
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The aging population of society is becoming an increasing problem in the UK. It is thought that over the next thirty years, the population of people in England aged 65 or over will increase 70% from 9.7 million to 16.5 million. In addition to this, it has been predicted that the number of people aged over 85 in England will increase by a massive 149% over the next three decades.
The aging population will increase the importance of social care in society, and this is reflected in the government's strategy. The strategy, which is called Lifetime Homes, Lifetime Neighbourhoods, aims to create age-friendly housing that can be easily adapted to meet the needs of aging residents. This means that much of the population will theoretically be able to stay in these homes for their whole lives, reducing the demand for specialist retirement flats or residential homes.
The strategy includes proposals to ensure that all new homes built after 2013 incorporate 16 key age-friendly features, which include wider doors suitable for wheelchairs, more accessible bathroom design and staircases that are big enough for stair lifts.
When launching the new strategy, Prime Minister Gordon Brown said: "This strategy sets out a package of measures that will enable more older people to live in high quality, warm environments that are suited to their needs - homes that help to make life easier, and to turn the challenges of ageing into opportunities."
Hazel Blears, Labour's Communities Secretary, also spoke of the new proposals and emphasised why Lifetime homes are so important. She said: "Demand for housing is high - being driven to a large extent by older people. Not only do we need to build more homes, but the right kind of homes too. That means 'lifetime homes' suited to families with pushchairs right through to older people in wheelchairs."
In addition to these proposals for new, more adaptable housing, the government is also planning to create more 'age-friendly' neighbourhoods. There are already ten new eco-towns planned, which will be among the first places in England to meet the new standards for older people.
To support older people in their current residences, the government has also announced a national repair and adaptations service. This service will be kick-started with a massive £33 million investment, which will allow a further 125,000 older people every year gain access to much-needed repairs and adaptations for their homes, improving their quality of life and allowing them to live more independently.
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Labour
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The president has just signed the Federal Housing and recovery Act of 2008. Legislation that will overhaul the Depression-era FHA and provide mortgage relief for 400,000 homeowners struggling with foreclosure woes.
This bill is also designed to quiet the jitters on Wall Street by offering some financial relief and additional accountability for the troubled, government-sponsored mortgage companies Fannie Mae and Freddie Mac.
While the bill started with a battle between the White House and the Democrats in Congress, bi-partisan support eventually led the President to withdraw his veto threat. Below are some highlights of this far reaching legislation.
Homeowner Relief invu planes Measures (Hope for Homeowners Act of 2008)
The law creates a new program to back FHA-Insured mortgages for debt-laden homeowners. Up to $300 billion will be available through the voluntary program operated by a board consisting of the HUD and treasury secretaries, and a chairman of the Federal Reserve Board and the Federal Deposit Insurance Corporation. (FDIC)
In exchange for new mortgages, homeowners will share future appreciation with the FHA. Borrowers must also meet a payment burden test to determine if they can afford a new mortgage.
Banks must agree to relinquish their claims for a payment equal to 85% of the current value of the home.
The homeowner relief program begins Oct. 1st 2008 and ends on Sept. 30th 2011.
New regulator for FHA
The law creates a new, independent regulator called the Federal Housing Finance Agency to govern GSE's (government sponsored enterprises). It will oversee Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
The Treasury Department has been granted temporary authority to purchase debt and equity of Fannie Mae and Freddie Mac through 2009 to provide financial stability for the mortgage giants.
Modernization of FHA
The law increases the FHA loan limit to 115% of area median home price with a cap at $625,000.
Down payments of 3.5% will be required for any FHA loan
Seller assisted down payment programs (such as Nehemiah) will end October 1st
The FHA mortgage insurance premium will increase to 3%.
The FHA's program for reverse mortgages is expanded with higher mortgage limits.
Tax Credits
Provides new first-time home buyer tax credit which is equivalent to an interest free loan of 10% of the purchase price of the home (up to $7500) to be repaid over the course of 15 years. It will be available through July 2009 for taxpayers who meet adjusted gross income levels.
Rules relating to the Low Income Housing Tax Credit will be simplified and states will see increased housing tax credit in 2008 and 2009 depending upon the size of the state.
Allows a new standard deduction for homeowners who do not itemize on their tax returns.
Other Provisions
The bill lengthens the time a lender must wait before starting foreclosure after a sooldier returns from service (from 3 to 9 months) and also provides returning soldiers with one year of relief from increases in mortgage interest rates.
Enhances mortgage disclosures requirements to require lenders to inform borrowers of the maximum monthly payments possible under their loans.
Provides additional funding for housing counseling and legal services to distressed borrowers.
44 billion will be provided for emergency Community Development Block Grant money to purchase and clean up abandon homes in areas blighted by foreclosures.
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