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From the archive - the Housing Corporation opposes a 67% grant rate as too low
Inside Housing looks back at what was happening in the sector this week five, 15 and 25 years ago
25 years ago
Inside Housing revealed that the Conservative government of 1993 was calculating the amount of grant needed to build new social housing, based on an assumption that the new housing association tenants should be spending 35% of their income on rent.
John Major’s housing minister, Sir George Young (below), let slip the figure in a quizzing by MPs, after it had been kept secret for four years.
“I am satisfied that the rents being produced are reasonable rents,” Sir George said, pointing out actual rents were more of the order of 23-27%.
A confrontation was on regarding what should be the level of grant rates – with the government offering grants of 67% of the cost of building, but the Housing Corporation recommending they should not fall below 71%.
15 years ago
Private housing developers in London had just refused calls to build as much as 50% affordable housing.
This was a new target set by City Hall under the mayorship of Ken Livingstone.
At that time, private developers were building about one-third affordable housing, but the Greater London Authority had stipulated a target of 50% out of 23,000 homes.
“Our position was that the industry was happy to provide 10,000 affordable homes and that relies on a supply of 30,000 homes overall,” explained Stuart Woodward, director of a consultancy whose clients included George Wimpey and Berkeley.
In a move that was seen as a riposte by Mr Livingstone, the mayor said that he would reject housing development plans around the Millennium Dome unless the proportion of affordable housing was increased.
The developer of the Greenwich Peninsula scheme, south of the River Thames, was planning that 35% of a planned 10,000 homes would be affordable.
Five years ago
Ten housing associations had been successful in winning a slice of a £700m fund to build private rented housing, Inside Housing reported.
Two other landlords – Guinness and Catalyst – planned to use their own funds to each build 1,000 private rented homes.
We reported the move as associations “stepping up” to deliver the coalition government’s ambitions for new build private rented lodgings.
John Hughes, development director at Notting Hill, one of the landlords to win funding, said: “It’s a good area to invest in, both in terms of servicing a client group and as a commercial investment.”
By contrast, last year we revealed that the top 50 housing associations building the most homes completed less than 1,000 units in total.
