HCA figures show collapse in social rent starts

Published by 24publishing for 24dash.com in Housing and also in Local Government

Affordable housing starts have fallen by 68% from a year ago, due to the closure of Government-funded housebuilding schemes and the move to the Coalition's revenue-based subsidy model.

According to Homes and Communities Agency (HCA) figures, a total of 15,698 affordable homes were started on site in the year ending 31 March, a decrease of 33,665 or 68 per cent from 2010-11.

This, said the HCA, reflects the closure of the National Affordable Housing Programme, the Local Authority New Build Programme and the Kickstart Housing Delivery Programme to new commitments in March 2011 and the move to the new 2011-15 Affordable Homes Programme in 2011-12.

Within the new starts, the majority (71 per cent or 11,130) of starts on site for affordable housing were for Affordable Rent, reflecting allocations made under the Government's new Affordable Homes programme - where rents can be charged up to 80% of the market rent.

The number of traditional social rented home starts collapsed during the last year - falling from 35,690 in 2010/11 to just 1,048 in 2011/12.

In terms of completions, 51,665 affordable homes were completed in 2011-12, a decrease of 4,195 or 8 per cent compared to 2010-11. This contributed to a total of 59,451 homes, including market homes.

The majority of affordable homes completed (64 per cent or 33,227) were for social rent, mainly reflecting activity started under Labour’s 2008-11 National Affordable Housing Programme.

The HCA said it had "exceeded" its key outputs for 2011-12, achieving a total of 59,451 housing completions in England against a target of 35,000, marking a "significant" contribution to government aspirations to deliver up to 170,000 new affordable homes by 2015.

Chief executive of the HCA, Pat Ritchie, said: “This is a good result and we are where we expected to be in our delivery programme. The numbers demonstrate strong completions and a solid platform on which to build, especially when put into context alongside the HCA’s wider delivery work. It also shows we are making a significant impact on boosting the supply of affordable homes in the areas where they are most needed, in partnership with local authorities and providers across England."

The housing minister Grant Shapps weclomed the rise in affordable housing starts during the last six months - where total affordable units rose from 429 in the April to September 2011 period to 15,269 from October to March 2012.

This was mainly because the outcome of offers for the Government's Affordable Rent programme was announced in July 2011 and starts under the new programme were achieved in the second half of 2011-12.

Mr Shapps said: “Far from the predictions of the doom merchants, today’s figures show work has started on over 15,000 new affordable homes since last September - a massive increase on the previous six month period.  This is clear evidence that our efforts to get Britain building are starting to yield impressive results."

Shadow housing minister Jack Dromey said the annual figures show a disastrous collapse in affordable housebuilding. He said: “The £4 billion cut to the affordable housing budget not only led to a disastrous 68% collapse in affordable house building over the past year but hit the construction and house building industries hard, helping tip us back into double-dip recession.

“The houses completed over the past year are a legacy of the last Labour’s Government affordable housing programme and the action it took to build much needed homes. We would act again now using a tax on bank bonuses to build up to 25,000 affordable homes, fund 100,000 youth jobs and get the economy going again.”

Shelter’s director of policy and campaigns Kay Boycott said: “Despite lots of talk from the government about building more homes, these figures show they simply aren’t being delivered. With just 15,700 affordable homes started last year, it now looks incredibly unlikely that the government will meet its target of providing 170,000 affordable homes by 2015.

“This is yet more depressing news for the millions of people struggling to get on the housing ladder, in particular the rising numbers of young families left with no option but to raise their children in unstable private rented homes.

“With house building a key lever to boost economic growth and provide jobs, we need to see bold and urgent action from this government to drastically increase the number of affordable homes being built.”