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HCA Affordable Homes Framework 2011 – 2015

March 21, 2011

The HCA Affordable Homes Framework for the next 4 years is described in the press release on the Department of Communities and Local Government Website as “providing a potential lifeline to some 4.5 million people on social housing waiting lists”. However, the new level of funding for the next four years means that ‘potential’ is probably a more appropriate word than ‘lifeline’.

The overall funding level over the 4 year period is for £4.5billion, which the government project will provide about 150,000 new homes. However of this about £2.3billion is already committed to provide 65,000 new homes, meaning that £2.2 bn. is available for the remaining 85,000. Of this £2.2bn, £400m is earmarked for special projects such as Mortgage Rescue and housing for travellers. Simple arithmetic gives an average grant figure of £21,176  per unit for these 85,000 units nationally. This level of grant – perhaps only around 10% of the cost of producing a new 2 bedroom apartment in London overall, and considerably less in the more expensive parts – must raise serious questions about whether it is possible to make any new scheme ‘stack up’ without a large injection of subsidy from elsewhere.

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