Housing associations urge government involvement

Housing associations and lenders are calling for the government to change the way it funds social housing, arguing the current system that combines a grant with income from property sales and borrowing is unworkable in the current economic climate. Opponents of the system say that grants for social housing are not high enough and require cross-subsidisation through selling and private borrowing. Association heads want the government to bring forward the spending of the sums allocated for the three-year affordable housing programme.