Housing Corporation News Release

Wednesday 18 June       Ref: 42/08

Housing Corporation Chief Executive says the public sector must provide leadership to help the Government achieve affordable housing targets
 
Delivering his final keynote speech to the Chartered Institute of Housing (CIH) conference in Harrogate, Housing Corporation Chief Executive Steve Douglas today called for the public sector to provide leadership and help the Government reach its target of three million affordable homes by 2020.

In his speech, Steve Douglas said the target was still achievable but a new approach is  needed within the public sector for it to happen.

Steve Douglas emphasised the need for the public sector to:

• help maintain supply through existing routes: house builders, contractors, commercial institutions, Housing Associations and procurement clubs;
• intervene where the private sector is failing to act by acquiring land, bringing it to market, getting it built out, being sensible about price and helping to bring back confidence and demand; and
• prepare for the eventual economic upturn by analysing capacity, skills and finance - and then developing new partnerships and approaches between the public and private sectors.

Steve Douglas said:

“The current housing market downturn has proved that the house builder model is driven by rising land and property value. As we can see now, when demand is less than supply, house builders will attempt to offload stock and contract supply, which is perfectly understandable.

“But this doesn't help produce the homes that are still needed. In an upturn the private sector comes into its own, in a downturn relying on the private sector alone is not enough. It is at times like this that the public sector must develop new approaches. If it does not, it will fail those who still need an affordable home to rent or buy.

“Now is the time for us in the public sector, local authorities and central government to take a leadership role. Between us we have a significant amount of developable land and resources; housing associations and developers have considerable development expertise. Even in a declining market, housing associations retain significant assets. We must tap these skills and resources creatively and collaboratively. Only with true partnerships and new approaches will we succeed,” Steve Douglas concluded.

Ends

For further information: Terry Sefton, press office, 020 7393 2118.

Notes to editors:

1) The Housing Corporation is the Government's national affordable homes agency, responsible for investing in new affordable homes and regulating nearly 2,000 housing associations who provide some two million homes across England.
 
2) The Corporation's £8 billion investment programme for 2008-11 is its biggest ever, set to fund at least 155,000 homes. Over 100,000 of these are for affordable rent and more than 50,000 for affordable sale through the Government's HomeBuy initiatives, helping people get a foot on the property ladder.

3) The Housing Corporation is working with Communities and Local Government and English Partnerships to establish the proposed Homes and Communities Agency and Tenant Services Authority.