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.