27 February 2004
Social landlords must become more efficient to make up for an expected squeeze in housing spending, according to a leading civil servant.
Running costs at the most efficient housing associations are up to three times lower than at others, said Neil McDonald, director of housing at the Office of the Deputy Prime Minister.
If the majority of registered social landlords brought their performance up to that of the best RSLs, many millions of pounds would be released for new homes, he told an affordable housing conference on February 25.
It was no secret that the forthcoming Spending Review would be very tight, said McDonald: 'If we get a small increase, we'll have done well.'
Local authorities, he added, were no more cost-conscious than most RSLs. 'I'm sure the best deliver a high-quality and efficient service but, when it comes to the lower and middle orders, there is vast room for improvement,' he told the audience of planners and developers.
McDonald appealed to delegates to suggest ways of building more homes that did not involve spending increases.
'Affordable housing is high on the political agenda. Ministers are prepared to look very radically at the ways things are done,' he said. 'If there are ways that don't involve lots of extra money, then tell us about them. I think you'll find ministers are very receptive.'
PFfeb2004
