Housing and the credit crunch: follow-up - Communities and Local Government Committee Contents


Supplementary Memorandum from CLG

RESPONSE TO QUESTIONS AT MEETING ON 1 JUNE

RESPONSE

Figures of unsold stock purchased by housing associations broken down across different regions.

  The table below shows the split of the allocations made for the purchase of unsold developer stock between flats and houses by region.

Developer stock units split by houses and flats based on allocations in 2008-09


RENTLCHO    

Sponsor LA Region
Flats
Houses FlatsHouses
East Midlands287367 189153
Eastern510572 443208
London24918 5512
North East97126 2419
North West212287 10071
South East530291 435106
South West761599 212197
West Midlands685387 468127
Yorkshire & Humberside162 2263444
Grand Total3,4932,873 2,456927



  The majority of units purchased are flats for both social rent and low cost home ownership but it must be remembered that the purchase of this stock was very much dependent on what was available from developers.

  Furthermore, it would be expected that stock purchased for first time buyers would typically have a higher concentration of flats. In the case of stock purchased for social rent, the distribution is more even as would be anticipated.

Q41 & 42 RESPONSE

Could CLG set out for us the figures for the planned departmental spending that substantiates the answers given in response to questions 41 and 42?

  Following the recent Budget, the indicative budget for the national affordable housing programme (NAHP) for 2010-11 stands at £2.6 Billion. The Budget provided new money for social housing in both 2009-10 and 2010-11, both through the NAHP and through the new housing kick-start programme. For the NAHP the new money consisted of £50 Million for grants from the HCA to local authorities for new social housing and £80 Million for mortgage rescue. From this, £75 Million additional funding has been added to the NAHP budget for 2010-11 (with the remainder in 2009-10).

  Mrs Beckett also referred on 1 June to the overall balance of funding: given the large amount of investment scheduled for 2009-10 it was agreed to re-profile, £200 Million of funding for affordable housing in the 2009 Budget from 2009-10 to 2010-11 to smooth investment over both financial years. In all these changes bring the current NAHP indicative budget for 2010-11 to £2.6 Billion.



 
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Prepared 14 July 2009