Housing Corporation likely to open up entire grant pot to private sector

July 1, 2005
The Housing Corporation’s entire £3 billion social housing grant pot is likely to be opened up to private sector developers, following a pilot scheme tested this year in which a £200 million fund was made available to them. A paper to the Corporation’s board, which has been leaked by the housing agency, suggests that developers will get full access to funds alongside registered social landlords before the pilot is completed. The shift in policy is thought to have arisen from the government’s desire to see an urgent increase in affordable housebuilding. <p></p><p>While this is good news for housebuilders, RSLs are said to be furious at news of the increased competition for grant. Former Corporation deputy chief executive Neil Hadden questioned the Corporation’s plans in his recent leaving speech. He said: "I have no problem with bringing in new ideas and grant recipients, but be careful that a tweak here or there does not bring down the whole system." </p>

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