Huge drop in social housing predicted

Housing associations have warned that without urgent government intervention there will be a ‘catastrophic’ collapse in the provision of new social housing. The 1,900 social landlords have urged ministers to change the way they are funded in order to prevent the supply of new, affordable housing drying up completely. They particularly want the limit on how much central funding can be used for development schemes relaxed, as it currently only allows the Housing Corporation to provide only 40 per cent of the cost, with the balance coming from borrowing or sales of private housing.