Jack Dromey slams 'disastrous' fall in affordable housing starts

Published by Julien Tremblin for 24dash.com in Housing and also in Central Government

Shadow Housing Minister Jack Dromey today blamed Government policy for the "disastrous" fall in the number of new affordable homes started on site in the six months to September.

Affordable housing starts have fallen by 97 per cent during that period compared to the previous six months, new statistics published by the Homes and Communities Agency (HCA) reveal.

Jack Dromey said: “Only one day on from the launch of the Government’s Housing Strategy, this out of touch Government’s credibility has been shattered.

"Grant Shapps likes to claim that last year his Government built more affordable homes for rent than any time since 1995-6 but the facts show that the 60,000 new affordable homes built last year were planned for, financed and started by the last Labour government."

HCA figures show there were 454 affordable homes started in the six months to September compared to 13,402 in the previous period; a 97 per cent drop. Compared to the six months to September 2010, when 49,361 affordable homes were started, it represents a 99 per cent fall.

Mr Dromey said: “Yesterday this out of touch Government committed to giving back only 10 per cent of last year's £4 billion cut to housing investment to build just 3,200 affordable homes, this wouldn’t even cover 10 per cent of the fall in the affordable homes starts in the last six months. Their housing policies are failing and those in need of a decent, affordable home are paying the price.

"Labour's five point plan for jobs and growth would introduce a bank bonus tax to fund 100,000 jobs for young people and build 25,000 more affordable homes."

Grant Shapps has previously insisted that the supply of affordable housing in the country is set to increase in the next few years. The Government has pledged £1.8 billion towards its Affordable Homes programme, which it hopes will deliver 80,000 affordable homes by 2015. More than £1 billion worth of contracts have already been signed between the HCA and housing providers.

Jenny Jones AM has criticised the Mayor of London for allowing a six month gap in affordable housing building to open up. Only 56 affordable homes were started in London in the six months to September 2011.

She said: “London desperately needs these homes and construction jobs so we can’t afford a six month gap in the programme. I’m going to ask the Mayor why he didn’t negotiate stop-gap funding to keep London building this summer.

“These figures are symptomatic of miserably inadequate policies from the Mayor and the Government. There is no end in sight to rapidly rising rents and personal debt.”