05 December 2003
A war of words has broken out between landlords and private developers over who should build social housing.
Housing associations are angry at claims by some developers that they could build 'affordable' homes up to 15% cheaper - claims made before MPs have given developers the go-ahead to bid for grants.
James Tickell, deputy chief executive at the National Housing Federation, demanded to see evidence that private developers were more efficient than registered social landlords. 'Housing associations have been competing on costs for over a decade,' he said. 'If there were any further savings to be found under the present competition framework, they'd have been found by now.'
Legislation to allow developers to bid for Housing Corporation grants is expected to be included in the new Housing Bill, due to be unveiled by the Office of the Deputy Prime Minister next week.
The House Builders' Federation declined to put a precise figure on how much private firms would save the Exchequer.
'The government is acutely aware that it needs to spend money wisely,' said HBF spokesman Pierre Williams. He added that social housing providers were being offered the opportunity to compete in the private sector. 'Both sectors are being given the chance to show what they are good at,' he said. 'It doesn't surprise us that some RSLs are concerned at this prospect.'
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