Recommendation 9

We challenged the Department about whether housing providers build homes where they are needed most. The Department does not allocate funding from the Programme based on its calculation of local housing need.20 Under strategic bidding, housing providers only state the region, not the local authority, in which they intend to build.21 The Department told us that local authorities state what mix of housing they would like when developing their local plans, and that housing providers follow these.22 The Department relies on housing providers to interact with local planning authorities and build homes where needed most, while ensuring value for money.23 We pushed the Department, noting that local authorities must meet overall targets for new homes, so are pressured to approve new homes, even if they do not meet the most pressing local need. The Department acknowledged that local authorities have to consider a trade-off between meeting local housing need, expressed by the total number of homes built, and their type.24