The housing lobby joined forces this week to urge the government to retain the system councils use to fund new affordable homes.
In their response to the Office of the Deputy Prime Minister鈥檚 consultation paper The Way Forward for Housing Capital Finance, the Chartered Institute of Housing, National Housing Federation and Local Government Association all said that abolishing local authority social housing grant would hamper efforts to tackle the housing crisis.

Under the current system, councils make grants to housing associations or resources come through the Housing Corporation鈥檚 Approved Development Programme. The ODPM is suggesting centralising the grant through the corporation. All three bodies said this would mean local needs would be less likely to be met. They said councils were better able to understand an area鈥檚 needs.

Meanwhile, the Liberal Democrats called a parliamentary debate on the affordable housing crisis on Monday.

  Housing spokesman Don Foster said: 鈥淐ouncils should be able to borrow against future rents to secure more affordable housing.鈥�

The LGA鈥檚 response warned: 鈥淚f the government is determined to change the current arrangements then it should give consideration to retaining at least some proportion of the incentive to local authorities to support affordable housing in their areas rather than, in effect, moving from 100% to 0% subsidy and expecting authorities to continue providing the same level of support.鈥�

Source

Housing Today