Shapps Attacks NHF over Affordable Rent Forecasts

Grant Shapps has slammed figures - released by the National Housing Federation (NHF) - that show the building of new affordable homes in the north and the Midlands is set to contract by nearly half as a result of changes in funding to the sector. According to a report in the Financial Times, the NHF has warned that the Government's Affordable Rent programme will work in London and the South East but will fail to deliver enough homes in other regions. Including existing commitments, the Government expects to build 150,000 new homes over the next four years. However, the NHF and others have argued that because social rents in many regions are already nearly as high as market rents, registered providers developing in such areas won't be able to generate the extra subsidy from its lenders. According to the NHF’s calculations homebuilding could fall by 54 per cent in the north-east and 44 per cent in the Midlands. By contrast, London could see a rise by 11 per cent during the same period. Read Grant Shapps’s reply on the CLG website.