The social housing sector gave a cool reception to plans to boost key worker housing in the South-east.
Later today, John Prescott is expected to announce an extra 200,000 homes for key workers, more affordable housing around Stansted airport, Milton Keynes, Ashford in Kent and the Thames Gateway, and a plan to encourage employers to contribute to key worker housing. But House Builders Federation spokesman Pierre Williams pointed out that the extra £1bn and 200,000 homes “equates to just £5000 per house.”

Others warned against concentrating development in the South-east. Michael Irvine, interim director of housing at the Association of London Government said: “How many London key workers would find it practical to live in the proposed Stansted to Ashford stretch?”

Dee Borley, director of the Royal College of Nursing’s housing advice line said: “Is it going to be enough to focus on Stansted to Ashford? We’ve got vacancies from Peterborough to Devon.”

The Council for Protection of Rural England voiced concern over “regional balance issues”, saying development in the South-east could lead to wider disparity between regions.

Tim Williams, chief executive of regeneration group the Thames Gateway London Partnership, welcomed the boost but demanded additional funding: “For the extra homes to sustain communities you need money for the local infrastructure. We want money for schemes such as the extension of the Docklands Light Railway.”

And a proposal to have employers contribute to key worker housing would be unpopular, warned the London Chamber of Commerce.