Delivering affordable housing during the credit crunch

Housing Minister Caroline Flint today announced new immediate measures designed to respond to the impact of the credit crunch on the housing market and maintain the delivery of new affordable housing.

Caroline Flint has tasked the Housing Corporation, English Partnerships and the team setting up the Homes and Communities Agency to work with the Government on proposals to stimulate the market, and increase confidence.

The measures are the first part of a wider package of action the Government will be announcing this month to increase confidence and help ensure stability and fairness in the housing market. We are continuing to look at further options to help first time buyers and families who aspire to home ownership, and to support the minority of borrowers who may be facing difficulties at the moment.

The Government has already announced it is extending eligibility for its shared ownership schemes, so that households with an income of £60,000 or less can apply.

We are also providing an extra £9 million for debt advice, and extending free legal advice for all households at risk of repossession.

Today's announcements include:
• A further £270 million being allocated through the Housing Corporation to deliver an additional 3,800 homes for social rent and 1,500 shared ownership homes over the next three years;
• A new national clearing house is being set up where house builders can approach the Housing Corporation with robust proposals to sell their unsold stock for affordable housing;
• Increasing flexibility around when providers can bid for funding from the Government's £8.4 billion affordable housing programme;
• Increased funding flexibility so that the Housing Corporation will now have the option to offer more of the payment to housing associations and other developers delivering affordable and social housing at the start of schemes, helping to improve providers’ cash flow, encourage new starts and stimulate wider market activity.