Featured Sector: Private Housing

Last Updated:

8th September 2023

During 2013 reduced government spending appears to have impacted on starts, which during the three months to October were down 4% on a year ago. ONS output figures for public housing have been strong, following the 9% rise in project starts seen during 2012; these figures are expected to fall back next year as the volume of projects on site diminishes.

The Government has substantially cut its capital budget for new social housing provision and is looking to social housing providers to tap private sources to fund a greater proportion of new housing projects with the additional cost met through higher affordable rents.

Data released by the Homes and Communities Agency shows the number of housing completions on programmes managed by the agency. These figures demonstrate the shift from social rents to higher affordable rents. Affordable rents, introduced in 2011, can be set at up to 80% of market rates, to allow housing associations to fund further building. During the second and third quarters of 2013, completions of affordable homes rose by 325% on a year before, whereas completions of homes for social rent fell by 68%.