Mr. Robert G. Hughes
To ask the Secretary of State for the Environment whether he will give details of the Housing Corporation's approved development programme for 1991–92.
§ Sir George Young
My right hon. Friend the Member for Bath (Mr. Patten), the then Secretary of State, announced on 8 November the allocation of additional resources to the Housing Corporation to enable housing associations to provide more subsidised housing, with special emphasis on meeting the needs of the homeless. Gross expenditure by the Housing Corporation is expected to exceed £2 billion in 1993–94, a 65 per cent. increase over the current year, with a target of 40,000 completions in that year.
This is a clear indication both of the Government's commitment to the housing association movement as the main providers of new subsidised homes, and of our determination to tackle the problem of homelessness.
I have today approved the Housing Corporation's proposals for the overall shape of its approved development programme for 1991–92. A further announcement will be made early in the new year about the regional allocation of resources, once I have received the corporation's detailed proposals.
The broad outline of the corporation's proposals confirms the priority that is being accorded to the problem of homelessness by the Government and their agencies. About half the total number of new homes for rent will be targeted on the homeless. The corporation's rural programme will also be maintained and increased in future years.
It is important that the large investment which the Government are making in the housing association movement should be employed efficiently. The programme shows a further increase in the proportion of schemes for rent funded jointly with the private sector, providing greater leverage of resources for the public sector input. The corporation is also committed to achieving efficiency gains of at least 5 per cent. over three years through, among other things, greater attention to cost competition in the selection of bids.
The introduction of the new grant regime under the Housing Act 1988 has been a major task. The corporation's early problems in programming its expenditure are now being resolved, and I am confident that it is able to respond positively to the enhanced role it now has in implementing the Government's housing policy.
The breakdown of the approved development programme—ADP—for 1991–92 and provisional plans for the following two years is as follows:
£ million 1991–92 ADP 1992–93 Plans 1993–94 Plans Housing for rent1 1,385 1,512 1,714 Major repairs and other works 53 71 84 Mini-HAG 7 8 9 Tenants incentive scheme 32 34 36 Low cost home ownership2 105 110 159 Other expenditure3 6 3 3 Total gross expenditure 1,588 1,738 2,005 Receipts -93 -97 -103 Total net expenditure 1,495 1,641 1,902
1 Includes public expenditure on mixed funded for rent schemes and 100 per cent. publicity funded rented schemes.
2 Includes shared ownership and rehabilitation for sale.
3 Includes right to buy mortgages and self build.
Programme targets for 1991–92 are as follows:
Approvals (units) General needs—rent 26,500 Special needs—rent 3,000 Rural housing (rent and sale) 1,500 Low-cost home ownership (non rural) New build 2,700 Rehabilitation (including outright sale) 1,000 Tenants incentive scheme 2,500 Mini-HAG 1,800 Total 39,000