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England’s Affordable Housing Scheme Falls 32,000 Homes Short

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A £21bn government programme to build more affordable housing in England is missing its target by 32,000 homes with big shortfalls in rural areas.

The programme involves grants distributed to housing associations but under the 2016 programme only 241,000 of the target of 250,000 homes will be built. In the latest wave, which started in 2021, only 157,000 of the targets of 180,000 will be built. About 1.2 mn households are on waiting lists for social housing in England, the highest number since 2016.

Homes England, the main agency that distributes the funds, has made grants for only 6,250 rural homes, about half the number required under the policy. In 2020, there were more than a quarter of a million people on a housing waiting list in rural areas but fewer than 4,500 social homes were built in 2019-20, according to the Country Land and Business Association.

The shortfall identified by the cross-party Commons committee comes as Gove faces allegations of negligence from builders in abandoning local housebuilding targets in the face of Tory backbench rebellion this week.

The MPs also highlighted the government’s decision to demand half of the affordable”] homes built under the 2021 programme were for ownership rather than rental, given building homes for social rent offers the best value for money by slashing the need for costly temporary accommodation. In London, a grant to build a new social home is more than paid back by housing benefit savings over 60 years and is 69% repaid in 30 years, according to the government’s own sums.

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Tags : government programme affordable housing England homes rural areas Homes England