New measures designed to respond to the impact of the credit crunch on the housing market and maintain the delivery of new affordable housing, has been announced by Housing Minister Caroline Flint.

The measures are the first part of a wider package of action the Government will be announcing this month to increase confidence and help ensure stability and fairness in the housing market.

The Government announcement includes:

- A further £270m being allocated through the Housing Corporation to deliver an additional 3,800 homes for social rent and 1,500 shared ownership homes over the next three years.
- A new national clearing house is being set up where house builders can approach the Housing Corporation with robust proposals to sell their unsold stock for affordable housing.
The Government has committed £200m so far for affordable housing providers to purchase unsold stock from house builders, which can then be used for social or affordable housing. The clearing house will enable this resource to be invested as quickly as soon as possible, by giving developers greater certainty and an early steer on their chances of success.
- Increasing flexibility around when providers can bid for funding from the Government’s £8.4bn affordable housing programme. Providers will now be able to come forward with proposals for the Housing Corporation at any time, rather than waiting for the quarterly bidding round. This will enable the Corporation to increase the pace of approvals, to deliver desperately needed affordable housing, while also supporting developers.
- Increased funding flexibility so that the Housing Corporation will now have the option to offer more of the payment to housing associations and other developers delivering affordable and social housing at the start of schemes, helping to improve providers’ cash flow, encourage new starts and stimulate wider market activity.

The Government also announced the sixth round of the Housing Private Finance Initiative. Councils will be able to bid for a share of up to £1.87bn to build new homes or refurbish existing houses and estates. The Government will be looking for bids that aim to shape strong and dynamic communities, not just build estates, and which make a real contribution to increasing local housing supply.

Housing Minister Caroline Flint said: “I am determined that we do everything possible to continue to promote stability and fairness in the housing market, and maintain our long term focus on increasing housing supply.

“There is an overwhelming case for building more housing and we must remain as ambitious as possible. But we also have to be flexible and responsive enough to adapt to the current economic climate. We have to acknowledge not only the difficulties faced by individuals and families, but by house builders too.

“My objective is to put together a package of the best possible proposals, working with industry and others to minimise the problems we currently face and create the conditions for a rapid recovery.

“That means providing more help for potential first time buyers, ensuring the delivery of affordable homes remains as high as possible and maintaining capacity so that house building increases as fast as possible when we begin the upturn.

“Without this, there is a real risk that when the market picks up again, which it will do in time, we will see another unsustainable property boom, making homes even more unaffordable for first time buyers and growing families.”