HL Deb 14 December 1988 vol 502 cc1014-7WA
Lord Brougham and Vaux

asked Her Majesty's Government:

Whether they can give details of the Housing Corporation's approved development programme for 1989–90 and forward plans for 1990–91 and 1991–92; and what grant rates will apply next year to the Housing Corporation's programme of mixed privately and publicly funded schemes.

The Earl of Caithness

We announced on 1st November that gross provision for the Housing Corporation in 1989–90 would be £158 million, rising to £1,036 million in 1990–91 and £1,328 million in 1991–92. By 1991–92, gross expenditure by the Housing Corporation is planned to be 80 per cent. above original provision for 1988–89, demonstrating the Government's confidence in the housing association movement to play a central role in the provision of subsidised housing for those in the greatest housing need.

The programme we have now approved for 1989–90 and the provisional plans for the following two years should enable the Housing Corporation to approve schemes in 1989–90 providing about 17,600 homes for rent rising to 24,000 new approvals in 1991–92, over 50 per cent. more than the expected number of approvals in the current financial year. This will be possible not only because of the greatly increased level of public resources being made available, but also because of the wider opportunities for private finance opened up by the Housing Act 1988. It is planned that by 1991–92 schemes providing about 80 per cent. of new homes for rent will be approved on a mixed funded basis, combining grant from the corporation with private loan.

Substantial public subsidy will remain available in all cases to ensure that rents are within the reach of those on low incomes. Mixed funded grant rates will vary in different parts of the country because of the significant regional differences in development costs, but the average grant rate in England in 1989–90 will be 75 per cent. The Housing Corporation will publish in due course details of the rates applying to different regions.

Provision of housing for sale under the corporation's low cost home ownership programme will also be significantly expanded. The whole of the programme is planned to operate on a mixed funded basis for 1989–90, which should allow the corporation to approve over a third more new homes than in the current year. By 1991–92 the number of approvals given for housing for sale should be nearly double this year's expected outturn.

In allocating resources regionally for new rented projects, greater emphasis will be placed in 1989–90 and subsequent years on the Housing Corporation's index of housing needs, which will be reviewed to ensure that it reflects housing needs as accurately as possible. £381 million of public and private money will be invested in London and the South-East, where housing pressures are most acute: nearly 40 per cent. more than in the current financial year. But, owing to the overall increase in resources available, investment in all other regions will also go up by between 12 per cent. in the North-East and 53 per cent. in the East Midlands.

At our request, the Housing Corporation will encourage associations to examine their lettings policies to ensure that priority is given to those in the greatest housing need, especially the homeless. We believe that the needs of the homeless are best catered for by focusing sufficient resources in the right places. The greatly expanded overall programme for the Housing Corporation and the improved targeting of resources to areas of greatest need should help provide much needed homes for the homeless.

We have also asked the Housing Corporation to ensure that the needs of those in rural communities are adequatley catered for. The corporation will bring forward to 1989–90 its target of giving 600 approvals for new homes in the special rural programme for villages with a population of less than 1,000. A further announcement will be made in due course on targets for later years and the corporation's investment programme in rural areas generally.

We have confidence in the Housing Corporation to make the very best use of the greatly increased level of resources being made available to it within the approved development programme for 1989–90 and provisional plans for the following two years, and to justify the enhanced responsibility it now bears for the provision of subsidised housing for those in housing need.

The breakdown of the Approved Development Programme for 1989–90 and forward plans for the following two years is as follows:

1989/90 1990/91 1991/92
ADP plans plans
£ million
Net allocation (cash limit) 701 921 1,211
Receipts 114 115 117
Gross allocation 815 1,036 1,328
HOUSING FOR RENT
Schemes approved under the Housing Act 1985:
100 per cent. public funding 501 158 36
Mixed funding 28 22 —
Schemes approved under the Housing Act 1988:
100 per cent. public funding 74 422 575
Mixed funding 40 318 587
Major repairs 52 54 62
Mini HAG 4 5 5
Housing for rent—total 699 979 1,265
HOUSING FOR SALE
Improvement for sale, leasehold scheme for the elderly and shared ownership:
Schemes approved under the Housing Act 1985 65 15 1
Schemes approved under the Housing Act 1988 7 21 30
Home ownership for tenants of charitable associations etc. 39 16 27
Housing for sale—total 111 52 58
OTHER EXPENDITURE 5 5 5

Notes

1. Included within Housing for Rent: Housing Act 1988 100 per cent. publicly funded schemes is expenditure to be incurred on schemes to be approved before 1st April 1989 which do not reach tender approval until after 30th September 1989 and are therefore to be resubmitted under the Housing Act 1988 framework.

2. Other Expenditure includes right-to-buy mortgages and a provision of £1 million to support certain self-build schemes.

3. £8.5 million has been included in the programmes of housing for rent and for sale in 1989–90 to cover the costs of certain projects in Merseyside. Further sums will be made available in subsequent years.