Policy paper: New Partnerships in Affordable Housing

No. 65/04

Press Release: 26 November 2004

HOUSING CORPORATION OPENS FUNDING TO PRIVATE SECTOR

Private companies such as building and construction firms will be given the opportunity to bid for Housing Corporation funding for the first time under radical new proposals outlined in the Housing Act.

As part of its new powers the Housing Corporation will be launching a pilot £200m investment programme in February 2005 and is asking for comments on proposals to allow a wide range of organisations, including private sector companies, to apply for this funding. Until now only housing associations registered with the Housing Corporation have been able to access Housing Corporation funds.

The Housing Corporation is inviting comments on the key features of the pilot programme, the bidding procedure, arrangements for programme management and the accreditation of managing bodies.

As part of the pilot, the Housing Corporation will introduce an accreditation scheme for both public and private bodies who may wish to manage the homes produced. Those organisations will need to demonstrate that they will be able to provide a high standard of housing management.

The aim of the changes is to extend the range of organisations able to provide affordable homes and to help the Housing Corporation get the best possible value for money from its investment by providing more quality homes more quickly in the areas where they are most needed.

The £200m investment will be distributed around the country and allocated according to the needs of each particular region in line with regional housing strategies.

Jon Rouse, Chief Executive of the Housing Corporation, said, "We very much welcome the new opportunities provided by the Housing Act. Although this presents us with many challenges, our priority remains to fund new affordable housing within sustainable communities and to provide the best possible value for money from our funding programme."

Ends

Notes to editors

1.The authority for the Housing Corporation to give grants to a wider range of organisations is contained in clause 213 of the Housing Act.

2.For the past 30 years, the Housing Corporation has contributed to the provision of new affordable and social housing through the use of its statutory powers to pay grants to registered social landlords (known as housing associations).

3.The Housing Act which has recently been passed by Parliament includes provisions to extend the Corporation's grant-giving powers to bodies currently unregistered by the Housing Corporation. It does this by introducing a new Section 27A into the Housing Act 1996. Once the new legislation has been enacted, the Corporation intends to apply these new powers for the first time early next year.

4.The Government first announced its intention to consider this extension to the Housing Corporation's powers last year in the plan for Sustainable Communities and consulted on this before the introduction of the Housing Act.

5.Comments on the pilot programme should be sent by 11 January by e-mail to comments.newpartnerships@housingcorp.gsx.gov.uk.

6.Full details of the proposals can be found at www.housingcorp.gov.uk