Cooper announces new polices for affordable homes

Housing minister, Yvette Cooper, today announced two new policies designed increase the number of affordable homes in the UK.

The first is designed to provide more cash to local authorities that develop robust plans to build more affordable property.

In areas where total housing stock is increasing by more than 0.75 per cent annually, authorities could get an additional £1,100 for each house built from the government – on top of infrastructure funding and other contributions.

Support could rise from £1,100 to £5,000 per home by 2010/11.

The second tenant of the plan will financially reward local authorities which develop plans to reduce the number of empty properties in under their jurisdiction.

The government hopes to work with owners of empty properties to bring them back on the market, either through offering advice on selling or, as a last resort, employing empty management dwelling orders to force a sale.

Unveiling the policies Ms Cooper said: "We need to provide more homes for the first time buyers and families of this and future generations.

"That's why we pledged £8 billion of investment for more affordable and social homes. We want to give more support to communities and councils who are doing their bit to deliver the extra housing needed, including bringing more empty homes back into use."

The money is in addition to the £10.2 billon announced last week to improve standards of social housing across the country.

The news comes after a National Housing and Planning Advice Unit (NHPAU) announcement earlier today that even ambitious government building targets may not be sufficient to meet future demands for property in the UK.

Present plans to build 240,000 homes annually up to 2016 may still not lower the cost of property according to the report.

Government policy has also been questioned by other sources.

Commenting on the report, the Liberal Democrat shadow housing minister, Paul Holmes, said: "The government must free councils from the shackles of central control.

"The bribery and micromanagement of local authorities that has characterised the last decade will not provide communities with the social housing they desperately need.

"Whitehall targets have created the housing crisis.

"What is required is a new system that gives councils the funding and freedom to provide affordable homes according to local needs, not central diktat."