NHF warns against proposed social housing cuts

Date posted: 20 Aug 2009

Government proposals to cut social housing income could lead to less affordable homes being built, the National Housing Federation (NHF) has warned.

According to the NHF, a proposed new rent cut for housing association tenants in the period 2010/11 could lower housing association income by as much as £260 million next year.

The federation believes that the government's plans are dictated by short-term political and economic factors and may fail to help some of the poorest members of society.

Government proposals to cut social housing income could lead to less affordable homes being built, the National Housing Federation (NHF) has warned.

According to the NHF, a proposed new rent cut for housing association tenants in the period 2010/11 could lower housing association income by as much as £260 million next year.

The federation believes that the government's plans are dictated by short-term political and economic factors and may fail to help some of the poorest members of society.

David Orr, chief executive of the NHF, believes that many families could miss out on affordable housing if the government plans go ahead.

He said: "Reducing rents by two per cent next year won't just leave a hole in capacity for one year, but forever.

"Not everyone will pull back from building - they will find the cuts from elsewhere - but that hole in capacity translated into homes is 40,000 in a decade."

The NHF represents around 1,200 independent housing associations in England.ADNFCR-2386-ID-19320448-ADNFCR

Date: 
20 Aug 2009
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