Affordable housing starts down 97 per cent in a year

Tuesday, 22 November 2011 12:39 PM

Affordable housing starts in England are down over 97 per cent in the last year according to figures released today by the homes and communities agency.

The months April to September this year saw just 454 affordable housing starts, compared to almost 14,000 last year.

The figures are particularly shocking as they come the day after housing minister Grant Shapps announced a new government housing strategy to help "fix the problems" in the housing market.

Jack Dromey, Labour's shadow housing minister, called the fall in affordable housing starts "disastrous".

He said: "These figures show the impact of this government’s 60 per cent cut of £4 billion to Labour’s Affordable Homes Programme. Only one day on from the launch of the government’s housing strategy, this out of touch government’s credibility has been shattered.

"Grant Shapps likes to claim that last year his government built more affordable homes for rent than any time since 1995-6 but the facts show that the 60,000 new affordable homes built last year were planned for, financed and started by the last Labour government."

The HCA figures show the extent of the growing housing crisis.

Total housing starts between April and September total 1,746, down from over 18,000 for the same period last year.

Housing completions are also down, falling from just over 21,000 during the corresponding six months last year to around 15,000 over the last six months, representing a drop of 28 per cent.

There are some explanations for the low stats, notably the period of transition following the ending of the National Affordable Housing Programme and the launch of the Affordable Homes Programme.

This means that not all starts have been counted, as contracts are not yet in place.

The HCA say that they have signed contracts with providers for just over £1 billion on the Affordable Homes Programme, which will provide momentum for affordable housing delivery over the next four years.

However, Mr Dromey said that  the coalition government's housing policies are "failing".

He continued: "Those in need of a decent, affordable home are paying the price. Labour's five point plan for jobs and growth would introduce a bank bonus tax to fund 100,000 jobs for young people and build 25,000 more affordable homes."

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