Lobby groups demand grant system remains unchanged

In their response to the Office of the Deputy Prime Minister’s consultation paper The Way Forward for Housing Capital Finance, the Chartered Institute of Housing, National Housing Federation and Local Government Association all said that abolishing local authority social housing grant would hamper efforts to tackle the housing crisis.

Under the current system, councils make grants to housing associations or resources come through the Housing Corporation’s Approved Development Programme. The ODPM is suggesting centralising the grant through the corporation. All three bodies said this would mean local needs would be less likely to be met. They said councils were better able to understand an area’s needs.

Meanwhile, the Liberal Democrats called a parliamentary debate on the affordable housing crisis on Monday.

  Housing spokesman Don Foster said: “Councils should be able to borrow against future rents to secure more affordable housing.”

The LGA’s response warned: “If the government is determined to change the current arrangements then it should give consideration to retaining at least some proportion of the incentive to local authorities to support affordable housing in their areas rather than, in effect, moving from 100% to 0% subsidy and expecting authorities to continue providing the same level of support.”