§ Mr. WallerTo ask the Secretary of State for the Environment when he intends to make an announcement about the distribution of housing resources for 1995–96.
§ Mr. CurryI am today announcing decisions about the distribution of resources for housing in 1995–96.
Councils will receive housing investment programme allocations totalling over £1.27 billion for 1995–96. Under the competitive HIP process, we have again been able to direct resources to those councils who are best able to make use of them.
Within the HIP programme £994 million is for general purpose allocations, or housing "annual capital guidelines". As last year these have been allocated 40 per cent on the basis of a statistical assessment of local housing needs and 60 per cent. on a discretionary basis related to performance.
As part of the assessment of their performance, each local authority is required to submit a housing strategy statement, setting out a comprehensive framework for the housing programmes for at least the next three years, covering not only the plans of the local authority but the contribution to be made by the private housing sector. The strategy is prepared in consultation with all those interested in the local housing scene, including the Housing Corporation, housing associations, tenant's groups and the private sector. Once again, there is a continuing improvement in the performance of the great majority of local authorities, with most of them now producing good quality housing strategies.
In addition to these annual capital guidelines, £278 million has been allocated for private sector renewal and housing defects in the form of "specified capital grant". Once again, 40 per cent. of these resources have been 735W distributed on a statistical assessment of local needs, and 60 per cent. on a discretionary basis.
I am depositing tables in the Library of the House showing each authority's annual capital guideline and specified capital grant allocation for 1995–96. Together, these comprise the HIP allocations. In addition, £314 million for continuing estate action commitments is being provided with the single regeneration budget next year. In addition, I am depositing a list of the authorities whose performance is assessed as being well above the average for their region.
The Housing Corporation's approved development programme provides for gross capital expenditure of nearly £1.2 billion in 1995–96. Some £870 million of this is available for homes for rent and some £280 million will be available for sale and incentive schemes which make effective use of the stock to house families in serious housing need much more quickly than would otherwise be the case. In addition some £35 million is available for housing association schemes which are part of city challenge and the rough sleepers initiative.
The Housing Corporation estimates that this programme should allow housing associations to provide some 52,000 new lettings in 1995–96. Over the three years to 1997–98, lettings from the Housing Corporation's approved development programme of some 135,000, together with output of some 45,000 from other sources such as housing association schemes supported by local authorities and cash incentive schemes, should mean that an estimated 180,000 new lettings will be produced over this period.
One of the key aims of the 1995–96 approved development programme is to make the most efficient use of the existing housing stock. Resources for short-life housing—mini housing association grant—have been increased to their highest level ever; do it yourself shared ownership will continue to be targeted principally at local authority and housing association tenants while resources for the tenants' incentive scheme increase steadily over the three years to 1997–98. Both DIYSO and TIS are efficient and cost-effective means to enable people to move into home ownership and vacate dwellings for others in housing need. A further key aim of the 1995–96 ADP is to focus increasingly on regeneration, both urban and rural. Some 40 per cent. of the resources for new approvals will be for regeneration purposes and will include rehabilitation schemes, schemes in city challenge and renewal areas, and short-life housing schemes. The Housing Corporation has also been asked to direct some 6 per cent. of the main rental and conventional sale programmes towards rural housing schemes.
The tables I am depositing in the Library of the House also contain details of the Housing Corporation's approved development programme for 1995–96.