29 February 2008
Three council-owned housing companies set up initially to improve tenants' homes are to receive more than £1m to build new properties.
Arm's-length management organisations from Brent, Derby and Sheffield are among the recipients of £3.3bn worth of development grants announced by the Housing Corporation on February 26. This is more than a third of the £8.4bn National Affordable Housing Programme for 2008/11.
Although most money is going to registered social landlords, the number of private developers receiving grants has increased from eight to 13. Knowsley Housing Trust, a special purpose vehicle set up by the local authority and other landlords, is to receive £4.6m.
Gwyneth Taylor, policy officer at the National Federation of Almos, said the £1.07m allocated to the three Almos was a breakthrough, even though they will build a comparatively small number of homes. As Almos cannot borrow from private lenders, they will rely on prudential borrowing, land deals and cross-subsidy sales to supplement grants.
PFfeb2008