Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 15
15
Paragraph: 92
We estimate that land value reform could reduce the cost of the programme by up...
Conclusion
We estimate that land value reform could reduce the cost of the programme by up to 40 per cent. By building more social housing on Government-owned public land, the overall cost of the programme could be further reduced. Some of the money could also be redistributed from existing budgets within the Department, and the rest could be borrowed while interest rates are historically low. While the overall savings gained from the long-term reduction in the housing benefit bill are difficult to quantify, it is clear that, over time, as the programme delivers social rent homes, the Government could use savings in housing benefit to subsidise the programme. Therefore, although there are many factors that might impact the overall cost of the programme, it is unlikely to cost £10 billion in extra spending.
Paragraph Reference:
92
Government Response
Acknowledged
HM Government
Acknowledged
The Government recognises the need to increase housing supply across all tenures. The Chancellor announced a £12bn investment in Affordable Housing at the Budget in March 2020, which will provide new homes up to 2025/26. The new £11.5bn Affordable Homes Programme will deliver up to 180,000 affordable homes if economic circumstances allow, and half of the homes in this new programme will be for Affordable and Social Rent, to help those in the greatest need, with 10% of delivery used to increase the supply of much needed specialist or supported housing.