Government plan to build 80,000 affordable homes at risk of falling short
There is something profoundly wrong it not “rotten” in the state of “rural housing land” – this article which I have quoted at length goes a good way to explaining the issues. Providing accessible and affordable places for people to live is a political football at the moment it seems to me and amidst all the talk we see less action!
“Government plans to build up to 80,000 properties under the affordable homes programme are at risk of significant failures, according to a National Audit Office (NAO) report released on Wednesday.
Nearly a fifth of contracts with housing providers are not yet signed; more than half the homes will not be delivered until 2015, the final year of the programme; and some providers are concerned they may not be able to charge rents at 80% of the market rate as originally agreed.
Amyas Morse, the comptroller and auditor general, said the plans leave little room for manoeuvre.
“There are key risks including the fact that more than half of the homes are planned for the final year, with no room for slippage,” he said.
“The final judgment on the success of the programme will depend on how well these risks can be managed between now and 2015.”
In 2010, the Department for Communities and Local Government announced the affordable homes programme, expected to contribute 80,000 homes through affordable rent and affordable home ownership.
Housing associations, local authorities and private companies set up by councils have set themselves up as “housing providers”, according to the report.
Unlike previous programmes, landlords will be able to charge up to 80% of market rates as rent while financing a greater proportion of the cost of new homes themselves through increased borrowing.
The programme increases the risks that providers must manage, including increased borrowing and exposure to the housing market, and dealing with the impact of changes to the benefits system.
Housing providers are finding it increasingly difficult to raise finance for capital investment, the report concludes.