03 December 2004
Private developers are unlikely to be allowed to manage social housing built using government grant.
A £200m pilot scheme for extending social housing grant beyond registered social landlords, due to start in February, assumes that properties will end up in the hands of existing landlords.
Launching the pilot on November 26, the Housing Corporation stressed it wanted to avoid rivalry between housing associations and developers that traditionally work together over social housing schemes.
'We would strongly prefer the management responsibilities for the homes produced to rest with housing associations, or others with a good record of social housing management,' says corporation guidance.
An accreditation scheme will be introduced for public and private sector bodies wishing to manage homes. To gain accreditation, high housing management standards would have to be shown.
The National Housing Federation fiercely opposed allowing developers to bid directly for grant. Although local authorities can bid, they are likely to struggle to raise private finance to supplement the grant.