Housing Associations (Hansard, 2 March 1993)

§ Mr. Hendry
To ask the Secretary of State for the Environment how many units were provided by housing associations in rural areas during 1991–92; and what proportion this represented of the total provision for housing associations for that year.

§ Mr. Baldry
In 1991–92, the Housing Corporation approved funding for 2,355 homes in settlements with populations of 3,000 or fewer. This represented 5.5 per cent. of the total programme for that year.

§ Mr. Alton
To ask the Secretary of State for the Environment what expectations he has of the ability of housing associations to raise private finance during the current financial year; and if he will make a statement.

§ Mr. Baldry
Housing associations are expected to raise some £850 million of private finance in the current financial year in support of projects funded by the Housing Corporation, including schemes undertaken as part of the package to help regenerate the housing market, announced in the Chancellor of the Exchequer's autumn statement. This is a welcome addition to the £2.3 billion of Government money being given to housing associations this year and means that a greater number of new social homes will be provided than would otherwise be possible.

§ Mr. Alton
To ask the Secretary of State for the Environment how much, as an annual percentage, of rents paid by housing association tenants is met wholly or partly from benefits.

§ Mr. Baldry
The information requested on the amount of housing benefit paid to housing association tenants is not available. The Department of Social Security has, however, started to collect information on housing association tenants who receive housing benefit and it is likely to be available later this year.

§ Mr. Alton
To ask the Secretary of State for the Environment what representations he has received about the effect of the poverty trap on the ability of housing associations to house people in low-paid employment.
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§ Mr. Baldry
In discussions and correspondence with housing associations some express concern that, as rents increase, it may become more difficult for associations to house those in low-paid employment.
It is, of course, the case that the housing benefit system is designed to target resources effectively on those in greatest need and the fact that substantial numbers of new association tenants are in receipt of benefit demonstrates that new association homes are going to those in greatest need.
Nevertheless, the latest data shows that up to one third of new lettings are made to tenants who do not receive housing benefit.