Funding boost for social housing

Wednesday, 17, Oct 2007 08:44

Housing minister Yvette Cooper has announced the government will be spending £10.2 billion on affordable housing.

The money will translate into 45,000 homes annually by 2010-11 - some 50 per cent more than the current level.

"Every region needs more affordable, decent homes - not just to own, but also to rent. Unless more homes are built, first-time buyers and young families will find it more and more difficult to get a foot on the housing ladder," said Ms Cooper announcing the figures.

In total some 110,000 social homes will be built over the next three years.

The money has been allocated in the wake of chancellor Alistair Darling's pre-Budget report - published last week - and covers the period 2008-11.

Ms Cooper announced the funding would be employed to improve existing social housing and for regeneration projects across the country.

"We all need to work in partnership to deliver these houses. This increased investment means that housing associations and councils can start planning now for more affordable homes in their area," continued Ms Cooper.

London will receive the most money from the total announced.

Some £3,970 million will be spent in the capital to 2010/11, an increase of 27 per cent on the 2007/08 level.

The south-east will also receive an improved level of funding. Up to £1,372 million has been allocated to the region, an increase of 30 per cent by 2010/11.

The biggest increases, however, go to the south-west and east of England, which will receive increases of 50 and 45 per cent in funding for social housing by 2010/11.

Allocation is based on a number of factors, including the number of households in temporary accommodation in a region, the number of overcrowded houses and the condition of local authority and private housing stock.

The industry has cautiously welcomed the statement.

"We welcome an increase in supply of affordable housing. While we recognise these properties will go almost exclusively to key workers and those considered to be in housing need, this will at least ensure the flats and houses will not go to investor landlords," commented Helen Adams of FirstRungNow.com.