asked Her Majesty’s Government:

Whether, in order to stimulate the construction of affordable housing, they have any proposals to enable local authorities to dispose of land for housing at less than full market value but achieving full market value over a period of time by retaining a financial interest. [HL4385]

The Local Government Act 1972: General Disposal Consent 2003, contained in ODPM Circular 06/2003, enables local authorities to make land disposals which will contribute to the promotion or improvement of the economic, social or environmental well-being of an area at less than best consideration, provided that the undervalue does not exceed £2 million. If the proposed disposal was not covered by the general consent, the local authority would have to apply to the Secretary of State for a specific disposal consent.

Additionally, the housing Green Paper, published in July last year, contained proposals for a local housing company (LHC) pilot programme. An LHC is a local authority-promoted housing development and management organisation, with wider regeneration objectives, likely to be established via a stand-alone corporate vehicle. English Partnerships, the national regeneration agency, is working alongside 14 local authorities to develop the LHC model. The LHC model may involve local authorities investing land suitable for housing which is in their ownership into the LHC and deferring some or all of their land receipt until such time as the LHC generates returns.

asked Her Majesty's Government:

What steps they propose to take to increase the construction of affordable housing on publicly owned land. [HL4386]

The housing Green Paper published last July announced our ambition to deliver 200,000 new homes on surplus public sector land by 2016. It also set out the role that English Partnerships, the national regeneration agency, will play in taking forward this agenda. So that the Government meet their objectives, English Partnerships is working in collaboration with public sector landowners to accelerate the process of bringing land forward for housing development while ensuring minimum standards are delivered.

English Partnerships standards include a 50 per cent minimum target for developing affordable homes on surplus public sector sites. This target will help maintain the pace of housing delivery. On sites where it is not possible to deliver 50 per cent affordable homes, English Partnerships will seek to maximise the potential for these sites to deliver affordable housing in accordance with local need.

The creation of the new Homes and Communities Agency will take forward and build on the successful housing programmes currently being delivered by the Housing Corporation and English Partnerships. The agency will play a key role in helping to increase the supply of affordable housing and will work with local authorities and other public sector partners to bring forward development on brownfield sites.