Housing Corporation News Release

13 December 2006                             

Media Contact: Katy Nicholson  020 7393 2115                          

Ref: 128/06

Biggest ever single investment in energy-efficient homes to be made by the Housing Corporation

Future funding for developments from the Housing Corporation will comply with level three of the new Code for Sustainable Homes, it was announced today (Wednesday 13 December 2006)  when Ruth Kelly Secretary of State for Communities and Local Government made a keynote speech on environmental sustainability.  

This represents the biggest ever single investment in energy efficient homes, and will create estimated savings of more than 40,000 tonnes of CO2 a year and over 2.5 million litres of water a day.

Today’s announcement re-enforces the Housing Corporation’s position as the biggest single delivery agent for environmentally-friendly homes in the country.

The Housing Corporation already leads the construction sector on eco standards.  The new affordable homes it funds are required to meet a minimum standard of EcoHomes Very Good.  As a result the vast majority of the 84,000 homes produced by the Housing Corporation’s 2006-08 funding round of nearly £4 billion are at EcoHomes Very Good standard or above., which has already  increased the use of sustainable materials and made substantial savings in water and CO2 compared to typical new-build homes.  

Now the Corporation has moved further, with the announcement that its next multi-billion-pound bid round for 2008-2010 will require new developments to reach Level 3 of the new Code, with its even higher minimum standards for carbon emissions and water consumption.
 
There will be extra Housing Corporation rewards on offer for developers who reach yet higher environmental standards, Ruth Kelly added in her speech .  And the Corporation commits to implement the learning's from English Partnership's zero carbon competition, also announced today.   

The bidding process for the next Housing Corporation funding round for affordable homes will launch in Spring 2007. 

Housing Corporation  Deputy Chief Executive, Steve Douglas said, “By ensuring that new affordable homes meet this new standard, we will save more than 40,000 tonnes of CO2 a year as well as over 2.5 million litres of water every single day.

“Moving to level three of the new Code for Sustainable Homes across our entire multi-billion pound national investment programme puts down a new marker for the construction industry.

“All house builders need to take an ethical lead on this issue, I believe.  At the Housing Corporation, we are delighted to kick-start this market and so help to drive down the cost of delivering substantial environmental gains across the entire construction sector.”

Ends.

Notes to editors:

For full information about Secretary of State Ruth Kelly’s keynote speech on environmental sustainability, see the news release “towards a zero carbon future on the DCLG website.
 
• This commitment relates to the Housing Corporation's next funding round for new affordable homes for 2008-2010, which will open for bids in Spring 2007.  Figures for this are subject to the Government’s Comprehensive Spending Round, so cannot be confirmed at this time, but are predicted to at least equal the 06-08 funding round of £3.9 billion. 

• CO2 savings quoted are compared to homes built to current 2006 Building Regulation Standards.  Savings of 2.5 million litres of water a day are as compared to the average new home.

• The EcoHomes standards for new built homes are developed by the Buildings Research Establishment.

• The Housing Corporation is the Government agency responsible for investing in new affordable homes and regulating over 1,500 housing associations across England.  Its  biggest ever investment programme of £3.9 billion for 2006-08 will fund 84,000 homes; 49,000 of these will be for affordable rent, and 35,000 will be for affordable sale through the Government's new HomeBuy initiative, helping people to get a foot on the property ladder.