ROOF Blog

Construction will start on a third fewer social homes next year, in a vivid sign of wider impending restraints on government spending.

The news comes as the country’s property quango the Homes and Communities Agency (HCA) reveals that the value of its development assets has plunged £1.1bn as a result of the housing crash.

But this financial fillip will only have a temporary impact, according to targets set by the HCA. Overall completions will continue to rise from a total of 55,625 this year to 61,500 next year, partly as a result of the government’s injection of money.

But housing starts will drop away next year, suggesting that there will be fewer completions in the coming years.

Only 29,900 grant-funded housing starts are scheduled for 2010-11, a drop of 34 per cent from the 45,500 target for the current financial year.

Of those, the number of social rented homes built under the National Affordable Housing Programme will halve from 30,389 in 2008-09 to 14,500 next year.

A Communities and Local Government select committee has reported that if the government is to meet its house building targets it must bring in new measures to support the mortgage market. The committee warned that the Treasury’s asset-backed guarantee scheme was not enough to kick start the housing market, and was ‘doomed to fail’. It also criticised the government for focusing on owner occupiers at the expense of the private and social rented sector.

The needs of vulnerable people will be protected in the Tenant Services Authority (TSA) regulatory framework. Speaking at the national sheltered and supported housing congress, head of the TSA Peter March said that coordination between tenant, landlords and their stakeholders is key to ensuring vulnerable tenants get the best service possible. The TSA consulted with more than 27,000 tenants to develop the standards which will apply to all social landlords from April 2010.

A report looking at how asbestos is managed and removed from people’s homes has revealed major differences in how local authorities and registered social landlords notify tenants of the likely risks. The report, from construction union UCATT, recommends that all social landlords maintain an asbestos register of properties, and conduct up-to-date house surveys.

Tenants First has outlined proposals for a public housing strategy to meet the housing crisis. It calls for the establishment of a £3 billion fund to be used for a ten-year regeneration programme that will include the setting up a board of representatives from government, tenants and those marginalised or excluded from housing. Tenants First said this type of approach guarantees that a proportion of the state resources being handed over to the banking sector will be directed back to social purposes.

The law has been changed so that no more tolerated trespassers can be created and all existing tolerated trespassers will be given a new tenancy. Before the amendments to the Housing and Regeneration Act and the successor landlord order came into force yesterday thousands of council tenants had lost their housing rights, even if they complied with any conditions imposed by the courts. Though they continued living in their property they could not require their landlord to carry out repairs, exercise their right to buy, or ensure a spouse or family member could succeed to the tenancy if they died.

Gwyneth Taylor from the National Federation of ALMOs (arms length management organisations) argues that if government funding dries up for ALMOs, which manage council housing on behalf of local authorities, one million council tenants would be affected. The federation has put together a paper providing examples of activities ALMOs can undertake to deliver social housing, including greater tenant involvement and adopting charitable status.

The Homes and Communities Agency (HCA) has published guidance on how social landlords can bid for part of the additional £84 million funding package to cover cavity wall insulation. The scheme aims to cover the properties which would not normally have been filled under the decent homes programme because they were hard to treat, and expects to deliver on 130,000 homes across the country during the next two years.

The Tenant Services Authority (TSA) said that housing associations have made a promising start clearing the backlog of unsold low cost homes. During the past quarter (January - March 2009) the number of unsold properties fell 16 per cent, and the number of homes unsold for more than six months dropped 19 per cent. TSA chief executive Peter Marsh said that housing associations had sold more homes than they converted to rented social housing in the last quarter, indicating that associations were adapting to the changing market.

The Homes and Communities Agency has released details of the £635 million in extra housing funding announced in April’s budget. Benefitting most with £400 million is the kickstart housing delivery programme, which will unlock building sites that have stalled, but where development could otherwise proceed immediately. A further £100 million has also been given to deliver new council homes for social rent, with all homes being completed in the financial year 2010/11.