Councils' lack of interest signals end for DIYSO

The government had planned to ditch DIYSO completely last year as part of its plans to introduce the Homebuy scheme. Despite protests from housing associations, the government stopped Housing Corporation funded DIYSO, but it did agree to allow councils to continue funding the programme for at least two more years. A review is due next year.

The reprieve looks to be short-lived. At the half way stage this year Housing Today has discovered that councils have only funded 81 DIYSO homes. Unless more are funded next year the government is likely to scrap the programme through lack of interest. Last year as whole 193 councils funded DIYSO units were created out of a total of 1,621.

Jane Porter chief executive of low cost home ownership specialists Boleyn and Forest Housing Society pointed out that at least 50 per cent on her association's waiting list could afford DIYSO but not Homebuy. She urged councils to "use DIYSO or lose it" in next year's programme.

The proportion of shared ownership schemes this year is much lower than previous years after the government decision to scrap quotas for the type of scheme funded under the Approved Development Programme.

The last government insisted that 30 per cent of the ADP should be spent on home ownership schemes. That then fell to 20 per cent, but the current amount is only 12 per cent, because councils prefer to support housing association bids for rented homes.

Housing associations point out that the low figure is at odds with current housing minister Nick Raynsford's public enthusiasm for mixed tenure.

National Housing Federation policy officer Tim Southall said: "Until there's a change of approach by local authorities in their housing strategies on the role that low cost home ownership can play in delivery balanced communities, there's going to be a short fall in shared ownership, and it's going to be difficult to meet the government's objectives for sustainable balanced communities."