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Affordable housing providers will be expected to deliver more small homes to help bedroom tax tenants downsize, under bidding criteria for £1.7 billion of grant funding.
The bidding criteria for the 2015/18 affordable homes programme, launched today, said there should be a focus on building one or two bedroom homes in areas where tenants are under-occupying.
Inside Housing reported the Department for Work and Pensions had delayed the prospectus as it pushed for a stronger focus on small homes.
In his foreword, housing minister Kris Hopkins also calls on providers to dispose of vacant high-value stock.
Providers will be asked to explain how many properties they are planning to sell to help fund the programme and explain why they have not sold more.
The prospectus said there should be a focus on ‘building more one and two-bedroom homes in areas where tenants under-occupying social homes do not have the option of moving to a suitably sized home.’
The Homes and Communities Agency will also take into account the regulator’s assessment of landlords’ value for money when scrutinising bids for funding.
The prospectus document said: ‘The HCA will take account of the regulator’s public judgements on the value for money standard, and will pay particular attention to the value for money of any provider’s bids where the provider’s governance judgement has been downgraded because the provider is not considered to have met the value for money standard.’
The HCA is expected to downgrade a number of landlords’ governance ratings this week for failing to produce an adequate value for money self-assessment as required under new rules.
It also confirms providers will have to explain whether their plans to re-let homes at the new affordable rent are ‘reasonable, achievable and sustainable’.
Housing associations, councils and developers can bid for funding for firm schemes, while those with a ‘proven track record of good delivery’ can apply for a mixture of fixed and indicative proposals.
Andy Rose, chief executive of the HCA, said: ‘We are continually looking at ways of maximising the number of new affordable homes for the funding invested, and secure early delivery. We have taken the opportunity to introduce new features which reflect some of the views expressed from partners during the current programme and during the programme development.’