Government measures 'could limit affordable homes'

Posted: 18 Aug 2009 14:15:53 GMT

New plans by the British government could see 4,000 fewer new affordable properties appear on the market each year, according to the National Housing Federation (NHF).

The comments from the group which represents social housing associations in England come after politicians revealed that income for social housing will be cut by up to £260 million in 2010.

NHF officials forecast that the administration will reduce income via a reduced rent rate system for tenants of housing association property in 2010-11 - something MPs think is required due to deflation.

Federation chief executive David Orr said: "We know that public spending is tight and you get a sense that in order to fund Building Britain's Future the government shook every sofa in Whitehall to see what fell out."

He added that reducing rents by the proposed two per cent next year will leave "a hole in capacity", which will cut down on the availability of affordable property throughout the country.

Earlier this year, the NHF called on more to be done to provide affordable housing in rural areas after a study found that young people are regularly priced out of the market in these areas of the UK.


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