REGION FEARS AFFORDABLE HOMES BUDGET SHORTFALL

Government funding for affordable homes in the South East falls at least £56 million short of what is needed to meet ministers' own targets says the South East England Regional Housing Board (RHB).

"Ministers constantly cite South East affordability as a major problem, but their actions simply don't match their words,"

said RHB Chairman Cllr Elizabeth Cartwright responding to Government consultation on housing investment for 2008-11.

Calculations by the Housing Corporation show that the South East will be at least £56 million short over the next three years. They estimate a shortfall of £25m of public sector investment in social rented homes a year and a shortfall of £31m for low cost home ownership properties.

"New regional cash allocations give the South East the bare minimum increase of 5% (£19m) for 2008, while other regions receive increases of up to 22%. The South East is promised further rises in 2009 and 2010 but even this will not cover the costs of meeting our Government-set target of 10,900 affordable homes each year."

Next year's 5% increase compares favourably with the 5% cut between 2006 and 2007, when South East housing funding fell from £406m to £388m. The region is now in a situation where it has just £1m more than 2006 but is expected to build 20% more homes.

Cllr Cartwright added:

"It is simply not credible to suggest that the £407m funding proposed for 2008 can achieve 10,900 affordable homes a year when the £406m we had in 2006 delivered only 8,100 homes. Government's lack of realism will only make matters worse for people in the South East who need good quality affordable homes."

There are fears that the shortfall could be even greater as the RHB believes the South East needs a higher proportion of large, affordable rented homes which are more costly than small shared ownership homes.

South East housing funds *
2006/07    £406million
2007/08    £388m
2008/09    £407m
2009/10    £458m
2010/11    £507m

* Note that from 2008/09 the budgets are indicative.

Contacts

Lesley van Dijk, Assembly PR Executive - 01483 555223

Heather Bolton, Assembly Communications Director - 01483 555220

Notes to editors:

The South East England Regional Housing Board's submission is available on the consultations page.

The South East England Regional Housing Board

The Regional Housing Board is a partnership board comprising members of the South East England Regional Assembly and representatives of organisations with an interest in housing such as the South East England Regional Development Agency and English Partnerships.

The South East England Regional Assembly

1. The Assembly is a partnership of councils and communities in the South East region. It was established in January 1999 to give a representative voice to the region, which covers Berkshire, Buckinghamshire, East and West Sussex, Hampshire, Isle of Wight, Kent, Oxfordshire and Surrey.
2. The Assembly is made up of 112 members including elected councillors nominated by the region's local authorities and 37 representatives from other sectors of the community (including business, trades unions, education, housing, health, sports, culture, tourism, faith groups, environmental, community and voluntary organisations) as well as the New Forest National Park Authority.
3. The Assembly has six roles:
1. Regional Planning
   preparing and delivering the South East Plan
2. Regional Housing
   the Regional Housing Board decides housing investment priorities
3. Regional Transport
   the Regional Transport Board decides transport investment priorities
4. Advocacy
   pressing the South East's interests in London and Brussels
5. Accountability
   scrutinising SEEDA's plans and impact
6. Alignment
   co-ordinating regional policies and decisions.

Our vision is for a distinctive, outward-looking, accessible region of prosperous, sustainable communities, with a high quality of life and environment.

Last updated: 08 November 2007