27 February 2009
By Neil Merrick
The number of homes built by housing associations that remain unsold is continuing to rise, in spite of moves to convert some to social renting.
The first quarterly analysis by the Tenant Services Authority showed that a total of 10,060 homes aimed largely at first-time buyers were empty at the end of January, compared with 9,955 three months earlier.
During the past quarter, 3,996 homes built for shared ownership were instead offered to families on council waiting lists. At the same time, £272m was generated from selling 3,868 homes.
Housing associations rely on property sales to subsidise new social rented housing and hoped to raise £1.3bn this year.
Almost half (4,560) of properties that were unsold at the end of January had been on the market for more than six months.
TSA chief executive Peter Marsh said the authority was working closely with RSLs that need further borrowing.
‘Building homes through housing associations remains one of the strongest — if not the strongest — public-private partnerships in the UK construction market,’ he added.
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