Hopkins announces affordable housing funding plans

Speaking to delegates at the Chartered Institute of Housing conference in Manchester, the housing minister announced that from 1 July housing associations building affordable homes using grant will receive 75 per cent of the grant up front and 25 per cent at completion. This is instead of 50 per cent up front and 50 per cent at completion.

After 31 March 2015, it will go back to the 50/50 split. He said: ‘This will increase until 31 March 2015 for Communities and Local Government department affordable schemes.’

Mr Hopkins added: ’Even with the progress that has been made we can do more on housing supply.

‘We’re challenging the housing sector to think differently. We want to make an early start on the next affordable homes programme.’

The funding is designed to speed up the delivery and construction of affordable homes, in the final months of the 2011 to 2015 affordable homes programme.

The housing minister said he was ‘keen’ to help councils increase their supply of ‘long-term, well-managed’ privately-rented accommodation at Local Housing Allowance levels.

Some housing figures responded to the announcement with scepticism that it would make much difference to delivery just nine months before the end of the programme. Jake Berriman, chief executive of Shropshire Housing Group, said the move had come far too late. ‘If you’re not on site now, then you will struggle to complete for this programme,’ he said.

Chris Handy, chief executive of Accord, said: ‘It will help with interest rates if we are getting money earlier.

‘But there is a sense of short-termism if in the run-up to the election there are dangers about the programme not being delivered on time.’

However, the move was welcomed by Steve Stride, chief executive of Poplar Harca and president of the Chartered Institute of Housing. Mr Stride said: ‘It will be an incentive to get on site quicker.’

On the second day of the conference, Mr Hopkins called on councils to aim for the ‘highest possible benchmark’ in their homelessness services.

‘I’m especially interested in working alongside councils about the options available for families for families who are particularly at risk of homelessness,’ the minister said.

‘I am keen to work with councils to see how we can increase the supply of long-term, well-managed, private-rented accommodation available to council to accommodate homeless individuals at Local Housing Allowance level lets.’

Responding to an audience member who asked whether Mr Hopkins’ status as a junior minister had diminished the voice of housing in government, he replied: ‘My ego doesn’t require me to have another title.’

When asked whether there would be any changes made to the bedroom tax before the next election, he said: ‘I’m fairly sure Iain Duncan Smith has set the direction of the government.’

He said councils calling on the government to raise local authority borrowing caps should prove themselves to the Treasury by using the extra £300 million in borrowing powers announced in April to build more homes.

Mr Hopkins added that local authorities should make their case to George Osborne by using the funds to build the homes ‘on time’ and to a ‘high quality’