03 October 2003
A select number of high-performing social landlords are being given extra incentives to speed up new housing developments in the Southeast.
Providing they can demonstrate to the Housing Corporation that they are financially stable and can deliver homes on time, housing associations will escape some regulation and be awarded two-year contracts.
The new system for awarding contracts for affordable housing will be announced later this month as regional housing boards prepare to take charge of funding councils and registered social landlords. But in spite of the fact that boards will decide how much money in total goes to RSLs in their region, the corporation says it retains the right to choose which landlords carry out building work.
'Regional housing boards have the job of producing strategies and making recommendations to ministers,' said Neil Hadden, the corporation's assistant chief executive for investment and regeneration. 'They don't decide which associations get what money.'
At present, he insisted, development funds are being spread too thinly, with about 380 RSLs receiving grants each year. Hadden declined to say how many associations will be offered the new preferred status.
Other RSLs will be able to apply for smaller grants as before. 'It's about delivering the Sustainable Communities vision and getting the best price for the public purse,' he said.
The new contract system could also be extended to non-RSLs if the government decides the corporation should fund private developers to build social housing.
But Neil McDonald, director of housing at the Office of the Deputy Prime Minister, said other developers would be used only if it had been clearly demonstrated that they offer better value for money.
Deputy Prime Minister John Prescott announced on September 29 that two RSLs – Genesis and Bedfordshire Pilgrims – had been chosen to build 1,600 homes, mostly in counties north of London. The three-year programme will include housing for at least 850 key workers.
PFoct2003
