Forum Brief: Housing plan

Spending on houses and road and rail links for them will rise by £1.3 billion a year by 2008, deputy prime minister John Prescott announced following the spending review.

Government Response: Office of the Deputy Prime Minister

John Prescott said: "We have a responsibility to build the homes people need or face the consequences of homelessness and social division.

"The Sustainable Communities Plan set out the step change needed to build successful, thriving communities. Since then we have turned plans into action; delivering more and better homes which people can afford; providing thousands of key workers with a place to live; and reversing years of decline that have blighted communities, especially in the North. 

"This generous spending review settlement will be a catalyst for continued progress, enabling us to create places where people want to live now and in the future.

"This keeps us on track to deliver an extra 200,000 homes in London and the South East by 2016, and allows us to respond to new proposals for sustainable growth where there is demand locally.

"We have a particular responsibility to provide housing to those least able to afford it. Our investment in social housing and homelessness prevention will mean 11,000 fewer families with children will be in temporary accommodation.

"But we must avoid the mistakes of the past, delivering not just housing, but the infrastructure communities need. That’ s why in responding to the Barker Review, Alistair Darling and I are announcing a new Community Infrastructure Fund to support development of new sustainable communities in the four growth areas."

Forum Response: British Property Federation

Ian Fletcher, BPF director, said: "This is a step in the right direction in implementing the Barker Review and we are pleased to see funding being made available for infrastructure and housing.

"Whilst each has received real funding increases, that needs to be weighed against years of under investment in both.

"Government spending should focus more on prevention rather than cure, and we would therefore like to see housing on the same level of prioritisation as education and health, because poor housing ultimately contributes to education and health problems."

Forum Response: Construction Products Association

Allan Wilén, economics director at the Construction Products Association, said:  "The Association is pleased to see that in his latest spending review the chancellor has recognised that the government must divert more funding towards addressing housing problems in the UK.