Housing Corporation policy of allocating funding on a subregional basis threatens the government's aim of creating and maintaining balanced communities, ministers were told this week.
Hammersmith & Fulham council told the first sitting of the reconvened local government and the regions select committee inquiry into affordable homes that the corporation's regional allocations of funding ignores the needs of much of London.

Dame Sally Powell, Hammersmith & Fulham's deputy for regeneration, said each London borough needed its own housing policy but instead the corporation had "a blanket policy for London".

The bulk of extra allocations have been given to outer boroughs in the expectation that more affordable housing will be built as a result, she said. Inner boroughs – where land and housing prices are highest – are expected to be able to nominate tenants to take up some of the homes built. Hammersmith & Fulham warned this policy would lead to a migration of working families from the borough, affecting the balance between the residents that remained.