£8bn investment in new homes ‘falls short’

26 July 2007

Local authority leaders have warned that the Government’s promise of investing £8bn in new and affordable housing may still fall short of the amount needed for supporting infrastructure and flood defences.

The chairman of the Local Government Association, Sir Simon Milton, said that ‘to turn rhetoric into reality’ around £11.6bn would be needed for investment in new housing over the next three years. ‘Councils will be far from convinced that enough money is being made available for infrastructure,’ said Sir Simon.

‘Sufficient funding for roads, schools and hospitals to turn desolate dormitories into places where people can live and work is vital. The weekend’s events remind us that infrastructure must include adequate flood defences and drainage systems.’

Plans for an additional £300M investment in transport infrastructure are included in the housing Green Paper, announced by housing minister, Yvette Cooper, which proposes building a total of three million new homes by 2020.

Councils and developers are also invited to bid for the chance to build five zero-carbon eco-towns as part of the Department for Communities and Local Government target of building at least 70,000 affordable homes by 2010-11, including some 45,000 new social homes. The new eco-towns will provide some 5,000 to 20,000 new homes by 2016, and are expected to have good transport links with existing towns. The Green Paper sets a target of ensuring all new homes are zero carbon-rated by 2016, and is backed by a promised £8bn of investment from the Comprehensive Spending Review for 2008 to 2010-11.

Effective flood defences will be seen as a key component of new infrastructure, and local authorities will be expected to consult the Environment Agency on all housing plans.

The Government has also warned that it will take action against councils which ignore Environment Agency advice to protect new buildings in flood plain areas. Cooper said: ‘We need more homes – but we need better designed and more sustainable homes. ‘This is a green Green Paper, responding to the challenges of climate change, with zero carbon homes and new eco towns, and with tough planning rules on building in flood-risk areas.’

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£8bn investment in new homes ‘falls short’

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