Cuts to public investment in housing over four years could see some of the most vulnerable people shouldering a disproportionate burden of the government’s deficit reduction measures warns the Chartered Institute of Housing (CIH).

In response to the Chancellor's announcement on the reduction to the social housing budget, CIH Chief Executive Sarah Webb said: "Although we are pleased to see spending held for the Supported People programme, Disabled Facilities Grant and homelessness services, the cut to the new building programme down to £4.4 billion, will have a major impact on how we deliver enough homes that people can afford to live in."

The government announcement to create new flexible tenancies with intermediate rents at a level of 80 per cent of market rents will support some new house building in some areas, notably London and the South, but CIH warns that these new "affordable rents" will not work in all housing markets and should not replace much needed social housing lettings for people on low incomes, including carers and pensioners.


CIH is committed to working with its members as well as the Homes and Communities Agency (HCA) to see how the sector can provide as many affordable homes as possible with less public money. CIH emphasised, however, that in order to protect the most vulnerable and those on the lowest incomes we will always need government support to build homes that people can afford to live in – whether it is money paid through housing benefit or through bricks and mortar investment.

CIH welcomed the continued funding for the Decent Homes programme which is improving the nation’s social housing stock as well as some funding for the Housing Market Renewal programme, although with this rolled into the regional growth fund, some areas of the Midlands and North will see work on regeneration stalled.

Ms Webb added: "The government commitment to deliver 150,000 new affordable homes is very welcome, and some new flexibilities around rents and borrowing are positive steps, but we are in midst of a housing crisis with less than half the homes we need being built. Cutting investment in new housing is a body blow to first time buyers, low income households and the construction sector."

(CD/GK)