Pickles: Grant Withdrawal for Housing Associations 'Might Happen'

Communities secretary Eric Pickles has said that he foresees a period where the grant given to housing associations to build new homes might be withdrawn altogether. Mr Pickles said "it might happen in the long term". He said: "We are a fair way away from that at the moment. We have been keen to get private money involved in social housing - something that's common on the continent, but up to now has been very elusive in England." Quizzed on whether it could happen in the next funding round post-2015, he said: "That's a bit too soon. Long term it might happen, but we're a long way away from that at the moment." The Government has slashed the amount of money it gives housing associations to build new homes for 2011-2015 by some 63%. In its place, it wants housing associations to borrow more from charging higher rents - thus utilising a smaller amount of grant per unit - typically £20,000. Read more on 24dash.