From the TUC

Cuts Watch #59: more on housing cuts

13 Jun 2010, by in Cuts Watch

The Coalition’s planned changes in planning law, together with the cuts in housing funding could reduce the number of social homes by two thirds to 20,390.

The National Housing Federation – widely respected as the representative organisation for housing associations and other social housing providers – has warned that the planned £100 million cut in the National Affordable Housing Programme will cost 1,453 homes.

The NHF also warns that the government is planning to axe “planning gain”, also known as “section 106” agreements. In these agreements, developers pay for affordable and social housing in return for planning permission. NHF warns that 40% of all new affordable homes are built on this basis and this change could cost 19,000 social homes this year. The re-designation of gardens from brownfield to greenfield could cost another 10,000. The abolition of regional targets for affordable housing will almost certainly lead to a further reduction, but the NHF has not given a figure for this.

Last week, Nicola reported the threat to the Supporting People budget for housing support for vulnerable people. The National Housing Federation has also warned that these budgets could be threatened by the cuts in the local government support grant. The DCLG cuts included £30 million from the Supporting People administration grant and £49 million from the Working Neighbourhoods fund. Supporting People is not ring-fenced and comes under the area based grants system, so these cuts may nudge local authorities into seeing it as a source for the £446 million cuts they have to make under this heading.

3 Responses to Cuts Watch #59: more on housing cuts

  1. The Squeeze
    Jun 13th 2010, 10:59 pm

    That’s nothing, wait until the high unemployment/low interest rate policy fails to arrest the decline in house prices and they go nuclear like the Irish have.

  2. Tokyo Gaijin
    Jun 14th 2010, 7:19 am

    “The NHF also warns that the government is planning to axe “planning gain”, also known as “section 106” agreements. In these agreements, developers pay for affordable and social housing in return for planning permission.”
    The developers pay ? I think not. The people who pay are those who buy the regular houses in the development which are obviously priced higher than would be the case to cover the additional costs incurred in getting the planning permission. A tax in all but name.

  3. Cuts Watch #109: Affordable homes | ToUChstone blog: A public policy blog from the TUC
    Jul 3rd 2010, 9:01 am

    […] to build 20,000 more affordable homes.This cut is in addition to money that has already been cut from home building. Related posts (automatically generated):Cuts Watch #19: Homes and Community […]