01 December 2006
Social landlords have pledged to dip further into their reserves to help fund a major expansion of housebuilding.
The National Housing Federation says landlords can provide about half the money required to build 210,000 homes over three years. In addition to borrowing £2.7bn per year from 2008/09, they would contribute £2bn annually from their reserves.
The call for an average of 70,000 new homes to be built each year came in the federation's submission for next year's Comprehensive Spending Review. The joint submission, made with four other organisations, says the exchequer should pay £11.6bn towards 150,000 homes for rent and 60,000 for low-cost ownership.
NHF chief executive David Orr said such a programme would not be affordable without the money put up by associations: 'We're asking for significantly more money and are therefore putting a larger offer on the table to support it.'
Reserves built up by RSLs are a frequent source of controversy with the Treasury. Last year, the total rose by £1bn to £11.8bn.
In 2004/05, RSLs contributed £600m from reserves towards construction schemes.
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