£11,259 billion was spent between 2003-04 and 2007-08 by the Department. The figures for each year in cash terms and in 2008-9 prices are shown in the following table.
Actuals 2009-09 prices 2003-04 1.937 2.218 2004-05 2.087 2.326 2005-06 2.098 2.291 2006-07 2.452 2.608 2007-08 2.685 2.772 Total 11.259 12.215
Expenditure has been converted to 2008-09 prices using the GDP deflator as published by HM Treasury. This deflator is calculated from Office for National Statistics data for seasonally adjusted current and constant price GDP for years up to 2007-08. 2008-09 is derived from HM Treasury forecasts for GDP deflator increases at the Pre-Budget Report 2008.
The Department has commissioned Heriot-Watt university to produce a new analytical model that will improve our capacity to estimate the number and type of households with some form of housing related need. We expect the housing need analytical model to be in use within Communities and Local Government by autumn 2009.
The CLG affordability model was developed in response to the Barker Review of Housing Supply in 2004. This model has been updated to reflect the tighter credit conditions we are seeing. We are also updating it currently to include the latest CLG households projections published in March 2009.
Both of these analytical models are designed primarily to assess the impact of important long-term drivers of need and demand, such as demographic change. They will also be valuable tools in understanding the near term impact of the economic downturn on housing need and demand.