Committee 'seriously concerned' with Affordable Homes Programme

Published by Max Salsbury for 24dash.com in Housing and also in Central Government, Development

The Commons Committee of Public Accounts has serious concerns with the Government's Affordable Homes Programme (AHP).

The Government has committed to building 80,000 affordable homes through £1.8bn in grants to social housing providers.

However, with the average grant of £20,000 per home a third of that under the previous programme, providers will have to make up the shortfall themselves. The committee says that this will lead to higher rents and thus an increase in housing benefit costs.

Committee Chair Margaret Hodge said: "The Programme therefore shifts costs from one government department to another, and it is unclear whether this will provide better value for money in the long term."

The Committee is concerned that the poorest in society will not benefit from the programme, suspecting that higher rent levels may lead to social housing ending up with those on higher incomes rather than those in most need.

Hodge added: "Delivery of the new housing is heavily skewed towards the end of the Programme. Half of the new homes expected to be built are planned for the final year of the Programme, and half do not yet have confirmed sites or planning permission. The Department will need to maintain a tight grip on progress and act promptly to address any delay.

"The Affordable Homes Programme addresses only 2 per cent of the unmet housing need in England and its future after 2015 remains uncertain. With 4.5 million people in England still waiting for an affordable home, the Department urgently needs to make clear how it will fund the growing demand for social housing."