The Housing Corporation chairman has called for an increase in investment to housing associations as the agency warned approvals could fall by 38 per cent over the next three years
Speaking at a south east regional housing conference Baroness Dean said: "We would welcome dearly an increase in our ADP. It would be wonderful for us to be able to take forward our policies on investment."

Sources claimed that Dean's remarks should be seen as part of a campaign being led by environment ministers for more housing resources in the government's current spending review. They claimed that the Treasury could be persuaded to spend some of the Government's multi-billion pound war chest on housing and regeneration as a way of attracting Labour's disaffected core voters.

The claims came as the corporation's Investment Bulletin, published this week, estimates that approvals could fall to between 14,900 and 18,600 by 2002/2003.

If the lower estimate is correct this would represent a 38 per cent drop on this year's approvals. The estimated drop is thought to be a result of corporation taking into account increasing land and property prices.

The bulletin also reveals:

  • The average rents on new schemes in every region except London are below average rent caps. In London the prospective average weekly rents are £77.53, £1.53 above the average rent cap.
  • A quarter of next year's schemes will be Egan compliant against a target of 10 per cent.
  • A new electronic bidding system is to be introduced later this year.
  • Next year's programme is expected to require £730m of private finance.
  • 89 per cent of the programme will be spent on schemes for rent.

Source

Housing Today