Forum Brief: Housing 'gap' funding

English Partnerships, the national regeneration agency, has launched the final stage of its consultation on housing "gap" funding today.

Responding, Keith Hill, minister for housing and planning, said: "This scheme will make a real difference to communities all over the country. Not only will it help regeneration in areas of low demand - by attracting developers to areas previously economically unviable - but will play a role in tackling the affordable housing shortage in the South East.

"This flexibility means a variety of housing developments, from owner-occupied or private rented accommodation to keyworker and affordable housing, can be created."

Forum Response: English Partnerships

Margaret Ford, chairman of English Partnerships, said: "This is an important step forward in our drive to deliver the government's sustainable communities programme.

"In this consultation, English Partnerships is showcasing ideas for an important new funding mechanism which will help to alleviate housing market pressure by encouraging high quality new housing of all types.

"It will create an open and understandable new methodology enabling developers to seek approved 'gap' funding to create more affordable homes."

Forum Response: Local Government Association

A spokesman for the LGA told ePolitix.com: "If the proposals have a positive impact in terms of bringing forward the development of land that was previously economic unviable and potentially help to improve the supply of affordable housing it is something that we would warmly welcome."

Forum Response: Shelter

Alastair Jackson, director of policy at Shelter, told ePolitix.com: "Although these 'gap' funding proposals appear to be a positive way to provide more desperately needed affordable homes, it is important to ensure that they are not just affordable for initial residents but remain part of future social housing stock.

"It is also important that there is no contradiction in policy between this scheme and new proposals to secure more affordable housing without public subsidy through changes to planning procedures."