Birmingham signs £6.7m affordable homes deal
Birmingham Council has become the third local authority – and first outside London – to sign its contract under the Homes and Communities Agency’s £1.8 billion affordable homes programme.
The largest local authority in England will receive £6.7 million of funding to deliver 305 homes for affordable rent.
The vast majority of funding for the programme, which aims to provide 80,000 new homes by 2015, has already been allocated. However, the majority of councils have waited until after they took on extra debt under the reform of the housing revenue account before inking their contracts.
Barking and Dagenham and Hillingdon signed their contracts at the end of March, immediately after the self-financing reforms came in. Between them, the two London boroughs will build almost 1,000 homes with a total of £21.7 million of funding from the HCA.
A further 23 local authorities are yet to sign their contracts, although the HCA is confident the deals will be in place shortly.
The government programme allows providers to charge up to 80 per cent of market rent for affordable properties, with average grant per home set at around £22,000.