Kate Henderson warns of pipelines being disrupted after expected announcement failed to materialise
The chief executive of the National Housing Federation (NHF) has called on the government to confirm funding allocations under the £39bn Social and Affordable Homes programme “urgently”.
The government and Homes England were widely expected to announce successful bids yesterday but did not do so.
Kate Henderson, in a private letter to Andy Burnham co-ordinated by the NHF and signed by several other leaders, has stressed the need for clarity over the funding.
Henderson told Housing Today this morning: “There is positive progress already with housing association starts and completions at a record high. However there is a risk that this momentum could be lost if the government does not urgently confirm funding for new social rent homes.
“We wrote to the prime minister earlier this week, asking for urgent action to confirm bids to the new SAHP, so councils and housing associations can keep moving at pace and deliver thousands of homes that are ready to be built. Without timely confirmation pipelines risk being disrupted and fewer homes will be delivered.”
The letter has been signed by the leaders of several other sector organisations including; the Association of Directors of Housing, Chartered Institute of Housing, Councils with ALMOs Group, National Federation of ALMOs, Local Councils Network and Northern Housing Consortium (NHC).
Tracy Harrison, chief executive of the NHC, said: ”Our members stand ready to build much-needed new homes, and we share the government’s ambition for everyone to have a secure, affordable home which gives them the foundation for a good life. Funding now needs to be brought forward as quickly as possible so that this ambition can be delivered.”
The letter comes amid speculation as to how Burnham will go about implementing his promised “biggest council house building programme since the post-war period” and whether there will be implications for the make-up of the new SAHP, which is expected to see grant funding given to housing associations and private developers in addition to councils.
Henderson also called for SAHP funding to be topped up in the early part of the programme “to match the sector’s appetite and capacity.” This follows Homes England asking providers to “re-profile” bids to meet Treasury annual limits on grant payments.
Harrison of the NHC also said: ““The letter highlighted that the government should build on current guidance and allow some SAHP funding to be used for estate regeneration to help replace ageing homes with good quality new homes. This will unlock capacity to build more social housing - particularly in the North.”
She added the NHC’s Renew inquiry has found that lower rents but similar costs for northern social housing providers mean investment in refurbishing and replacing homes often comes at the cost of building new homes.
The government has been approached for comment.
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