Budget cuts threaten 4,500 affordable homes

6 07 2010

Funding cuts announced by the coalition government have put nearly 4,500 social housing units at risk, it has emerged.

The Homes and Communities Agency (HCA) this afternoon published details of the social housing projects that could be cancelled or downsized as a result of budget cuts.

At risk are 912 social housing units under the Local Authority New Build (LANB) scheme worth nearly £60m, and 74 Kickstart 2 schemes worth £240m.

The at-risk Kickstart 2 schemes comprise just over 7,000 homes in total, including 3,512 social housing units.

The TUC’s Nicola Smith warned yesterday that the housing funding cuts could also cost upwards of 9,000 private sector construction jobs.

The HCA’s regional offices will now work with developers and local authorities to see which of the at-risk projects will be able to go ahead with the money the agency has left.

It is not yet clear how much money the HCA has to fund these affordable housing projects, given the cuts it has suffered since the election.

The first round of HCA cuts – amounting to £230m – was announced in late May, leading to the scrapping of the Gypsy and Traveller programme for 2010-11.

Meanwhile, hundreds of social housing developments under the Kickstart 2 and LANB schemes were put on hold, awaiting a further funding decision by the government.

Yesterday that decision came. The government announced that it would give the HCA £390m of funding – but this doesn’t clear the agency’s £610m government funding shortfall this year.

As a result, the HCA will have to make up the £220m balance with cuts, on top of the £230m announced in May.

The £390m of funding announced yesterday does mean the agency can proceed with the LANB projects it has contractually committed to, and Kickstart 2 developments that were approved by April this year – more than 12,000 homes, 8,551 of them affordable.




3 responses

6 07 2010

Are any of these cuts specified anywhere, by l.a. area or region, for example?

6 07 2010

Hi Matt, they are – though they are mainly Excel docs so not easy to post online. I’ve emailed you them directly.

8 07 2010

[…] Budget cuts threaten 4,500 affordable new homes […]

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