The Association of London Government is pressing the Office of the Deputy Prime Minister for extra funding to tackle the “chronic lack” of affordable houses.
The ALG is concerned that the formula used by the government to calculate the funding received by London boroughs does not take account of the housing shortage. It has called for this to change.

In the December 2001 spending round, London boroughs were given £402m, an increase of 5.2% on the previous year. But the ALG says it costs London councils more than £100m just to cover the cost of providing affordable housing, so more money is needed.

An ALG spokesman said: “London boroughs are having to [house people in] temporary forms of accommodation such as bed and breakfasts. The formula should allow councils to cover the extra costs of doing this.”

The ODPM will consult on a number of new formulas at the end of the summer.

Source

Housing Today