Magazine article Public Finance

Lending Crisis Leads to a Lack of Low-Cost Homes

Magazine article Public Finance

Lending Crisis Leads to a Lack of Low-Cost Homes

Article excerpt

Housing associations and developers are scrapping plans to build homes for low-cost ownership because of the mortgage crisis.

Work started on just 10,787 low-cost home ownership properties last year, well below a government target of 14,000. With first-time buyers struggling to arrange mortgages, many of these homes have since been earmarked for social renting.

Provisional figures from the Homes and Communities Agency also show that 19,743 low-cost homes were completed. This was up from 18,865 the previous year but well down on the government's 2008/09 target of 21,600.

The last two quarterly surveys by the Tenant Services Authority both showed about 10,000 low-cost properties standing empty because housing associations could not find buyers.

The HCA's preliminary figures, published on April 14, included money allocated by the Housing Corporation before the agency's launch in early December.

In spite of the recession, the two organisations spent £2.6bn between them out of the £8.4bn three-year National Affordable Housing Programme funds, in line with government projections. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.