§ Mr. Clifton-BrownTo ask the Deputy Prime Minister (1) what plans he has to abolish the local authority social housing grant and replace it with increased resources to the approved development programme to support the priorities of regional housing statements; [76382]
(2) what proposals he has to convert the current local authority repayable loans to registered social landlords into one-off grants. [76383]
§ Mr. McNultyThe local authority social housing grant (LASHG) enables those local authorities with the necessary capital resources to make a loan to Registered Social Landlords (RSLs) for new or improved social housing, which is then reimbursed by the Housing Corporation. It is a demand-led mechanism, with no link to relative need to spend.
We have been consulting on options for replacing this system with one that targets resources to areas with the greatest housing need. We have invited comments on two alternatives—providing resources through the Approved Development Programme, or replacing LASHG with a regime in which local authorities make grants direct to RSLs.
The consultation period ended last Friday and we will make a further announcement when we have considered the responses.