More housing cash looks set to be allocated to London and the south east following the government's plans to reintroduce homelessness as an indicator of need
Housing Today has learnt that the ministers will shortly announce that they plan to reverse the last government's decision to scrap homelessness as an indicator for allocating cash. It is understood that they currently favour counting the number of people in temporary accommodation as the new indicator.

This will mean more money for new housing going to the south, but the change is unlikely to provoke huge outrage in the north because the sums involved are expected to be relatively small. New information from the latest English Housing Condition Survey that will also be used for the first time, will partially offset the swing in funds to London.

The exact weighting for homelessness has yet to be decided, but it understood that the government is currently considering a range between 5 per cent and 15 per cent.

This will be the weighting within the so-called 'new provision indicator', which largely determines the Housing Needs Index used for the allocation of Housing Corporation funds. This also influences the General Needs Index for the allocation of housing cash to councils, but to a lesser extent.

The last government provoked widespread outrage when it began phasing out homelessness as an indicator in 1995.

The housing lobby is expected to welcome the change.

Local Government Association housing policy officer Gwyneth Taylor said: "The principle is the critical thing, it has been practically impossible for local authorities and housing associations to accept a housing need indicator that does not include homelessness as indicator particularly in the way you decide where new homes should be built."

She added: "It probably won't result in an enormous shift in money, but it puts it on a better basis."

Source

Housing Today