The government is to give more than £1.2bn to the Housing Corporation (HC) to fund the massive housebuilding programme announced in July.
Housing minister Jeff Rooker today said that the £1.2bn increase in affordable housing grants made available by the Office of the Deputy Prime Minister in July had been allocated to the HC’s Approved Development Programme.
At the National Housing Federation conference in Birmingham, Rooker said that he expected to deliver up to 22,700 homes in 2003-04 – exceeding the government’s social housing target for 2001-04.
He claimed: “The cash injection represents the beginning of a significant step change in the delivery of social housing as outlined by the deputy prime minister last July.
“Cutting construction time by half means key workers wait less time to buy their own home. Homes built using modern methods are more energy efficient, helping lower fuel bills.”
Rooker said that modern prefab methods would be used to provide at least 1,000 new homes, paid for out of a £200m Challenge Fund set up to provide 4,000 homes for rent and low-cost sale in the South East.
The RICS welcomed the government’s decision to step up its new-build programme, saying that it should go some way towards alleviating chronic housing shortages in the South East.
But Stuart Poore, senior policy officer at the RICS, warned: “We are doubtful whether this will have any impact on house price inflation in areas of high demand.
“We are also concerned that the government does not become overly fixated with problems associated with high demand areas to the detriment of investment in other areas.
“Well managed and sufficiently financed housing regeneration in areas of low demand should remain a key priority.”
EGi News 18/09/02
