16 November 2007
Housing associations have leapt to the defence of a major government regeneration scheme after the National Audit Office questioned whether it represented value for money.
An NAO report on nine Housing Market Renewal pathfinders, published on November 9, found conditions in some neighbourhoods had improved while people living in other areas suffered heightened stress due to demolition programmes.
The watchdog called on the Department for Communities and Local Government to be clearer about how it expects the pathfinders to stimulate wider regeneration, including better schools and transport.
But the National Housing Federation described the report as 'misleading'. It urged ministers to continue backing the 15-year scheme.
Housing associations refurbish and build many homes on behalf of pathfinders, which are mostly run as council partnerships.
Derek Long, head of the NHF's northern region, said some pathfinders had better records than others but overall results were positive.
'The fact that they're taking out excess and unpopular stock means that it won't be sitting there as a disincentive to investment,' he said.
Ministers have committed £2.2bn to the scheme, including £1bn in the Comprehensive Spending Review. By March this year, £870m had been spent refurbishing 40,000 properties, demolishing 10,200 and building 1,100.
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