The Chartered Institute of Housing (CIH) has warned that diversion and delay of public funding means that social housing tenants and vulnerable private tenants could fail to see their homes modernised to meet the required decent homes standard by 2010.

CIH Chief Executive Sarah Webb and Director of Policy and Practice Richard Capie gave evidence to the Communities and Local Government (CLG) select committee on Monday and called on CLG ministers to publish an assessment of progress against the decent homes target and identify income streams to clear the backlog and complete the programme.

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The professional body for people working in housing identified the need for swift reform to the council housing finance system (the Housing Revenue Account) to enable councils to become financially self sufficient; a change in borrowing rules to allow councils and arms length management organisations (ALMOs) to borrow funds to improve homes; and government commitment to the long term future of ALMOs as vital to the future investment in council housing.

CIH also warned that a more ambitious Decent Homes Two is needed from 2010 which would focus on making homes more energy efficient, and that this must be combined with a detailed investment plan. In a survey of CIH members, 73% agreed that if there were to be a post-2010 standard, it should have a particularly 'green' focus and 93% of members identified measures to address energy efficiency and fuel poverty as the most important.

Ms Webb said: "Unless a programme of this kind is begun soon, there is little prospect of the government meeting its carbon reduction targets."

CIH also proposed that social landlords should have more flexibility on the rent they charge.

(CD/KMcA)