London councils are considering proposals by the London Regional Housing Board to provide ‘gap-funding’ for regeneration projects that will help meet the decent home standard.
The Association of London Government is canvassing opinion on assistance for schemes where estates are rebuilt at a higher density with better social housing paid for almost entirely by building of private homes for sale.
The board proposal would offer grants limited to an as-yet-unspecified sum per property to projects where there is no housing association grant. Grants would cover the gap between receipts from sales and project cost. There would be a presumption that additional social housing would not be built on site.
The consultation is a response to proposals put forward in July by the Sustainable Communities, Mobility and Choice Taskforce of the London Housing Board.
The redevelopment of low-density estates in areas of high house prices has been pioneered by Barnet council.
Brian Reynolds, the council’s deputy chief executive, said: “To some extent this is a response to the Barnet model. We will almost certainly be interested in making a bid if this goes ahead.”
Reynolds said Barnet’s experience showed that two new homes for sale needed to be built to pay for every social home that was reprovided.
An Association for London Government spokesman said the consultation was “informal and low-key”.
Source
Housing Today
