Findings on Financial Viability of Social Housing Sector

The Commons Committee of Public Accounts publishes its 13th Report of Session 2012-13, Financial viability of the social housing sector: introducing the Affordable Homes Programme, as HC 388.  The Rt Hon Margaret Hodge MP, Chair of the Committee of Public Accounts, said: “We welcome the 80,000 homes due to be built under the Affordable Homes Programme, but have serious concerns about the impact of financing the scheme partly through higher rents on the Housing Benefit bill and on affordability for tenants. The Programme will be delivered through £1.8 billion of government grants to social housing providers, but the average grant of £20,000 per home is only a third of that under the previous programme. The government expects providers to make up for the lower grant in part by charging tenants higher rents. This will lead to an estimated £1.4 billion increase in the Housing Benefit bill over the next 30 years.”  Read more on the Parliament website.