§ Mr. DafisTo ask the Secretary of State for the Environment if he will establish a working group to investigate the potential for channelling further private finance into social housing projects and the monitoring of such investment.
§ Mr. BaldryMaking use of private finance is an important element in our housing programmes. Our objective has been to increase the proportion of private funding in order to obtain the maximum benefit from the public resources available. For example, housing associations, which are the main providers of new social housing, are required to raise part of their development funds from the private rented sector. Around £2.5 million in private finance has been raised by housing associations since 1988; and it is hoped that a further £3 billion will be raised over the four years from 1992–93.
In addition, some £1.5 billion of private finance has been raised as a result of the large scale transfer of local authority properties to housing associations. This finance 356W is being used to improve existing stock, to repay debt, and to develop new social housing. Other programmes, such as estate action, housing action trusts and city challenge, aim to foster public and private co-operation in the regeneration of urban areas.
We continue to encourage investment in the rented sector and to consider how to maximise the use of private sector funding and expertise in meeting housing need.