Extend housing grants to five years, paper argues

28 Sep 06
Social landlords and other house builders could be offered grants covering periods of up to five years under plans to step up the construction of affordable homes.

29 September 2006

Social landlords and other house builders could be offered grants covering periods of up to five years under plans to step up the construction of affordable homes.

This proposal is included in a new Housing Corporation paper that follows discussions involving housing associations, private developers and lenders. Since 2004, development grants have been awarded every two years, with most money going to larger registered social landlords that achieve 'partner' status.

Future investment approaches, published on September 21, suggests that RSLs and developers with the best track records should become 'plus partners' and gain extra flexibility, including the opportunity to amend schemes without corporation approval. In future, up to 80% of a development programme might be agreed on a biennial basis and remaining funds allocated at other times.

In addition to incentives for high performers, the corporation is also promising a cut in the amount of information that organisations must provide. Steve Douglas, the corporation's deputy chief executive, said: 'As we go into the Comprehensive Spending Review, there is a golden opportunity for the sector to demonstrate its ability and willingness to respond.'

Neil Griffith, research leader at the National Housing Federation, said long-term funding would need to reflect changes in costs.

PFsep2006

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