Ministers warned that housing boost could relocate problems

31 Jul 03
Housing experts have warned ministers not to become over-reliant on the multibillion pound house-building scheme across key 'growth areas' of the Southeast announced this week, claiming it should not be considered a cure-all for massive problems elsewhere

01 August 2003

Housing experts have warned ministers not to become over-reliant on the multibillion pound house-building scheme across key 'growth areas' of the Southeast announced this week, claiming it should not be considered a cure-all for massive problems elsewhere in the region.

Organisations such as the Chartered Institute of Housing said they welcomed Deputy Prime Minister John Prescott's breakdown of his controversial housing blueprint for the region, which suffers from chronic shortages and consistently rising prices.

But the CIH claimed the government's plans could switch scarce funds to the four areas earmarked for huge investment at the expense of towns elsewhere in England that also face shortages and a lack of affordable homes.

David Crosby, regional policy officer for the CIH, warned: 'The government has addressed many housing concerns with this funding package, but there is a feeling that some of the investment could exacerbate problems elsewhere. Ministers must be careful not to simply relocate the very problems they have set out to eradicate.'

Broadly, however, Prescott's July 30 announcement was warmly welcomed. Summarised in Creating sustainable communities: making it happen, it represents the first phase of funding under the government's wider 'sustainable communities' plan. It outlines where up to 120,000 new homes will be built and 180,000 jobs created by 2016. Four areas – the London/Cambridge corridor, Thames Gateway, Milton Keynes and Ashford in Kent – will receive most of the public investment.

Thames Gateway projects alone will receive £330m over the next three years, which ministers believe will help 'lever in' around £2bn of additional private sector investment.

Urban development corporations will be established in Thurrock and East London, while a joint English Partnership/Housing Corporation initiative will develop 56 sites in former new towns such as Harlow, producing up to 1,300 homes by 2005.

The project also includes plans to allow housing developments to tap into massive transport infrastructure projects, such as new sites close to the Channel Tunnel Rail Link and additional investment across the M1 and M11 corridors.

Prescott said: 'We also recognise that successful delivery of this agenda requires long-term investment in health and education. We will ensure schools and hospitals are in place as part of the development plans.'

The Sustainable communities plan was published in February 2003 and outlined wider commitments to accommodate the economic success of London and the Southeast, while detailing action for areas of low demand and abandonment in the Midlands and North.

But environmentalists attacked Prescott's plans, claiming much of the building would destroy green belt land.


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