Welsh Assembly Government announces £20 million funding for affordable homes

Shared equity home ownership and re-starting building work on stalled housing developments are two key areas to benefit from £20 million in extra Welsh Assembly Government funding, the Deputy Minister for Housing announced today.

Jocelyn Davies AM, unveiled details of where the cash will be used to help provide more affordable housing on a visit to Chepstow, where she helped Melin Homes’ celebrate the completion of more than 3,000 new homes. 

Today's announcement brings the total funding from the Strategic Capital Investment Fund in response to the impact on housing of the recession to £62 million.

Ms Davies said: “This new capital funding will help us in our One Wales commitment to provide 6,500 more affordable homes. This aim remains a key commitment and we must not shy away from it even in a recession.

“I was delighted to announce in July this year (2009) that at the half-way point in the One Wales Government we had already created 3,252 affordable homes, more than 50% of this target.

“Given the current economic conditions this is particularly impressive.

“Our funding will make the most of opportunities to increase housing demand and take advantage of new properties and land, bringing with it added benefits of helping maintain employment in the building industry.”

The funding will:

• Enable Housing Associations to buy and build on Assembly Government land and land belonging to Health Bodies and the Forestry Commission.
• Allow us to pilot intermediate, or sub-market rent, schemes across Wales with Housing Associations.
• Enable Housing Associations to part-buy equity in houses to make it easier for people to get mortgages to buy homes – this is the existing Homebuy scheme.
• Allow an increase in affordable housing developed as part of section 106 planning permission agreements where work has stalled. This may allow private developers re-start building.  This would have to be a priority for the Local Authority.

Ms Davies said: “This SCIF is not about buying existing properties, it is about increasing affordable housing on sites rather than buying developers’ unsold properties.

“The Local Authority role in the SCIF programme is crucial. It is important that the properties provided with SCIF meet local housing needs – the right homes in the right place.”

Peter Davies, Melin’s Director of Development, said: "The Assembly’s SCIF initiative is a really positive response to the economic downturn and, in particular, the difficulties being experienced by the construction industry in Wales.

"It has also enabled Registered Social Landlords such as Melin to provide additional high-quality affordable homes in areas where there is a desperate need.”

Assembly Government officials are now working with the Homebuilders Federation, Welsh Local Government Association, and Community Housing Cymru to ensure that the money can be spent in 2010/2011.

Officials will be contacting Local Authorities and Housing Associations before Christmas to ensure that schemes are ready to go in April 2010.