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Social Housing

Volume 472: debated on Tuesday 26 February 2008

10. What assessment she has made of the potential of local housing companies to increase available social housing stock. (188693)

Local housing companies have the potential to contribute significantly to the target of 200,000 new homes on surplus public sector land by 2016. English Partnerships is working with 14 local authorities on developing the local housing company model. That will provide an accurate basis for assessing its potential, but early indications suggest that it may be possible, through the model, to deliver 15 to 20 per cent. more affordable housing on each site than traditional disposal and planning processes would deliver.

Will the Minister expand on the benefits of local housing companies in providing extra resources for local authorities and extra affordable houses in my constituency and others?

The model places local authorities at the very heart of the development process, thereby affording councils greater influence over such matters as the quality and mix of houses. To respond directly to my hon. Friend, I should say that, crucially, it allows councils to benefit from the increasing value of land on the site which can be ploughed back into affordable housing. I am taking a keen and personal interest in the 14 pilot areas for local housing companies and I hope that more councils will consider that model in future.