Affordable housing delivery is at risk from ministers' tunnel vision on allocating regional housing cash, says the South East England Regional Assembly.

Ministers this week are expected to announce regional housing budgets for the next three years, but limits on how funds can be used could rule out innovative South East projects. The Assembly argues that the schemes would overcome common problems in planning new affordable homes but Government rules may prevent this. The two schemes would account for less than 4 per cent of the South East's expected £1.3 billion budget. They are:

• Regional Infrastructure Fund (RIF - £30m): This will help unlock sites for development by funding infrastructure to support new housing, which would normally be refused due to a lack of infrastructure investment. The RIF spending can be claimed back once development is complete so the funds could be re-used for new projects in the region. It is recommended to use money from the RIF to help deliver housing in the Thames Basin Heaths area where new development has been in a logjam for more than a year.
• Brownfield Land Assembly Company (BLAC - £18.7m): This will clear up and prepare small scale brownfield sites so they can be sold for new development. The money from the sale can then be re-used for investment in other sites. Over the next three years it is estimated that 650 extra affordable homes could be built with help from BLAC.

Assembly Chairman Cllr Keith Mitchell CBE, said: "The Assembly and Government have the same aim and that is to build more affordable homes. But ministers' tunnel vision is obscuring the realities of how delivery happens. If Government is really committed to deliver more affordable housing, it needs to broaden its horizon and work with the region on overcoming the barriers that prevent us building the homes we all want to see.


"Building more affordable housing in a complex market requires innovative approaches and our proposals will help release brownfield and fund vital infrastructure such as transport and utilities before homes are built. Delivery could be increased considerably which brings significant gains for a small price."

(JM)