Spending cuts 'could hit government's affordable housing strategy'

Mon 25 Jan 2010

Plans to build more affordable homes in Britain could be severely dented if planned public spending cuts come into force.

This is the view of the National Housing Federation (NHF), which said the government's Pre-Budget Report suggests the housing budget will be slashed by almost a fifth over the next decade.

It warned that this could lead to the planned number of new affordable homes being cut by more than half a million.

David Orr, chief executive of the NHF, said this would deepen the existing housing crisis in Britain and "kill off the dreams" of those who desperately need decent and affordable housing.

He added that cuts of this scale could lead to thousands of jobs and apprenticeships being lost, as housing is one of Britain's key generators of jobs and prosperity.

Roger Fitton, a partner at Winckworth Sherwood, commented: "Whether or not public spending cuts will affect the delivery of affordable housing does depend on where cuts are made and whether those involved in delivery can make efficiency savings without that affecting delivery."

This comes shortly after London mayor Boris Johnson confirmed that the UK capital is on track to deliver 50,000 affordable homes by 2012.