Unsupported browser

For a better experience please update your browser to its latest version.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Existing schemes face cuts to provide £1.5bn funding for affordable housing

  • Comment

The government’s £1.5 billion investment in building affordable housing is to come through cuts to existing schemes

The Communities and Local Government department has revealed funding will be taken from its growth fund, decent homes and private sector renewal programmes to finance the building scheme.

Other departments including Business, Innovation and Skills, Transport, Children, School and Families, the Home Office and Health will be expected to provide £930 million for the Building Britain’s Future pledge, which was announced by prime minister Gordon Brown last month.

The Homes and Communities Agency (HCA) has also been asked to hit an increased efficiency target of 3 per cent in operational savings and to find £183 million through ‘efficient and flexible management’ of its housing and regeneration programmes.

An additional £35 million has been allocated to the Housing Market Renewal (HMR) Pathfinder areas.

Bob Kerslake, chief executive of the HCA welcomed today’s announcement as an indication of ‘strong momentum and quick delivery through the HCA.’

On the £1.5 million funding for affordable homes Kerslake said: ‘The funding for additional homes announced recently by Government will add substantially to our existing affordable housing programme, helping local authorities to meet housing need in their areas and simultaneously helping house builders and RSLs to maintain new build activity.

‘There is a premium on new build activity and I am pleased that the sector has seen the benefit in putting an additional £1.5bn into housing delivery. 

‘However, Government has had to make some difficult decisions as to where that funding should come from, based in part on the HCA’s existing wider programme.  We are confident that we can find the funding needed this year from managed savings, with no need to look at spending on specific programmes.

‘Next year, as well as further managed savings, Government will need to find around £278 million from the HCA’s existing programme, which will come from two areas – Growth and a deferral of Decent Homes funding – to minimise the impact on individual local authorities, and in particular on those who have been recognised for their high performance.’

  • Comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions.

Links may be included in your comments but HTML is not permitted.

Related Jobs

AJ Jobs