Downturn will mean fewer social homes
The government’s social housing programme looks set for serious cuts as ministers seek to rein-in public spending in light of the recession and a slump in house building
Statistics released by the Homes and Communities Agency (HCA), the quango charged with overseeing the development of affordable homes, show that grant-funded completions will drop to around 29,900 in 2010-2011 – a cut of 34 per cent from the current year’s 45,500 target.
The Prime Minister made the project one of his main priorities in June, announcing an extra £1.5 billion in funding for the programme.
But the drive has been hit hard by the credit crunch, with the cost of financing each unit increasing.
The news comes not long after the HCA announced the value of its privately-held development assets had plunged by around £1.1 billion because of the housing crash.