Affordable Housing Budgets Slashed by 60%

In presenting the Comprehensive Spending Review, George Osborne today confirmed early reports of a massive cut in the funding of affordable homes. Over the next four years capital investment will drop to £1.1bn per annum, compared to £2.8bn a year under the last three years of the HCA’s National Affordable Housing Programme (NAHP) – a 60% reduction year on year.

By significantly increasing rents to new tenants, the government hopes the delivery of new affordable homes could still reach 150,000 units over those four years (compared to 155,000 for the three years of the NAHP), but commentators are skeptical. First off the blocks, David Orr, Chief Executive of the National Housing Federation, has ‘slammed’ the cuts.

In this context, it might well be that initiatives such as the Community Right to Build or the Home on the Farm idea – which might otherwise be regarded as somewhat marginal – may take on greater significance.

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