Grant Would ‘Ramp Up Rapidly’ Under Labour

Housing grant would “ramp up rapidly” under a Labour government, John Healey has said.  The shadow housing secretary described the £4bn a year previously promised by the party as a “starting point”. It comes as the conference is due to vote on a motion calling on the party to pledge “at least £10bn a year for housing grant, ringfenced for delivering 100,000 social rented council homes to be announced at the first Budget”. Read more on Inside Housing.

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Affordable Housing 'Trap' Warning From MPs

A government scheme to provide more affordable housing in England could trap some of its poorest residents on benefits, a committee of MPs warns. The Commons Public Accounts Committee (CPAC) said in a report that properties built under the Affordable Homes Programme will cost more to rent.  This is after the government negotiated a much lower grant with providers.  The government says the scheme will deliver 53,000 more affordable homes than under the previous funding model.  In its report, the CPAC also raised concerns about whether the programme would deliver the houses ministers have promised. The committee also said it was also "not yet clear" whether the reduced grants would save money in the long term.  The grants are £20,000 per home on average, a third of those from a predecessor scheme. 

Read more on the BBC website.

Dromey: Labour Government Would Keep Housing Grant

Jack Dromey has hinted that a Labour administration would increase or maintain central government grant levels for new homes.  The shadow housing minister said he considers the coalition’s affordable rent product at up to 80 per cent of market rent to be an ‘Orwellian notion’ as the product is not affordable to many people. The coalition slashed capital funding for new social homes from £8.4 billion to £4.4 billion for the 2011-15 spending review period, with just £1.8 billion of uncommitted funding available for new affordable homes.  The government has instead allowed landlords to charge ‘affordable’ rents at up to 80 per cent of market levels to boost their borrowing.  Mr Dromey said that Labour would not ‘simply accept the affordable rent model’ and is committed to social rents.  Read more on Inside Housing.