HC Deb 14 July 1993 vol 228 cc536-7W
Mr. Alfred Morris

To ask the Secretary of State for the Environment what steps the Government have taken to generate private sector investment in social housing building programmes since 1988.

Mr. Baldry

By introducing a new financial regime for housing associations in the Housing Act 1988, the Government have enabled associations to raise private finance to augment the contribution made to new schemes from public funds. Housing associations have to date drawn down more than £2.5 billion of private finance in support of the Housing Corporation's approved development programme.

Mr. Alfred Morris

To ask the Secretary of State for the Environment what is his Department's estimate of the proportion of private sector loan funding which will be required to maintain housing association building programmes in each of the years 1993–94 and 1995–96.

Mr. Baldry

We estimate that the total private sector funding attracted by housing association schemes sponsored by the Housing Corporation in 1993–94 will be £645 million. This represents 33 per cent. of the anticipated total cost of mixed-funded housing for sale and rent to be provided through the Housing Corporation.

The Government have announced their objective of increasing the proportion of private sector funding in new housing association schemes by reducing grant rates to 55 per cent in 1995–96. Final decisions on grant rates will only be taken when Ministers have considered all the relevant evidence, including the availability of private finance to maintain the development programme.