CLG Found To Undervalue Affordable Housing

The way the government measures the value of affordable housing is fundamentally flawed and the sector has double the impact currently assumed, according to independent research.  Allocation of public funding has been calculated based on a Treasury formula that indicates that every pound invested in affordable homes is worth just 50 pence because affordable homes have been thought to displace housing of other tenures.  This means the Treasury has assumed that one out of every two publicly funded homes would have been built anyway by a private developer.  However, independent research commissioned by the G15 group of London’s largest housing associations indicates this assumption is flawed.  Read more on Inside Housing.