Federation welcomes new £2.1bn social house-building programme

The National Housing Federation has today welcomed the Government’s pledge to invest £2.1billion on a new social house-building programme.

The organisation, which represents England’s housing associations, also praised ministers for promising to overhaul the way affordable homes are allocated.

But the Federation dismissed claims by some that migrants were increasingly being allocated social homes at the expense of local people – pointing out that just 4 per cent of housing association properties were let to non-UK residents last year.

The Prime Minister today announced they will give local authorities more discretion to give social housing to local people or applicants who have spent a long time on waiting lists.

Federation director Ruth Davison said: “We need a housing allocation policy that is credible and balances the competing housing needs of people on waiting lists.

“The Government has at last recognised that the current allocations policy is unfair, and we look forward to working with ministers to create a system that is fair and flexible.

“What we need is a guarantee that a proportion of homes in each area will be given to specific groups – for instance low income couples – so that a wider range of people would have a chance of getting an affordable home.”

Davison criticised those who try to undermine community cohesion by suggesting that much of the housing crisis is caused by migrants taking up a large proportion of affordable homes.

She said: "It is an urban myth that people don't get affordable housing in their locality because of migrants. Non-UK nationals were last year only allocated around 4% of housing association properties.”

She added: “The real problem is a lack of supply – that is at the root of our nation’s growing housing crisis.”

Federation director Ruth Davison said: “With up to five million people on waiting lists in England alone, we are facing an unprecedented housing crisis.

“Today’s pledge to invest £2.1bn in delivering new social homes is great news for those on waiting lists – and housing associations who built more than 38,000 affordable homes last year stand ready to help deliver the housing our country needs.”

She added: “Housing associations are currently the only organisations delivering affordable housing in volume and, under their unique funding model, can provide 25% of the cost of each new home from their own resources. This represents terrific value for the taxpayer.

“Housing associations also have land ready to build on, development staff on tap, and the necessary funding in place to start delivering even more affordable housing immediately.”