Recommendation 14

Homes England told us that the number and proportion of affordable homes planned for the sites intended for Starter Homes has increased from 1,700 (29%) to 2,370 (36%), reflecting an increased focus on affordable housing.37 However, Homes England was unable to tell us how much each affordable home on these sites would cost.38 We queried why the expected cost per affordable home of those funded by money intended for Starter Homes appeared much greater than the cost per affordable home delivered by local authorities. By our own calculations, Homes England spent £83,700 per affordable home funded through the Starter Homes 2015 funding, and £37,700 per affordable home funded through the Starter Homes Land Fund, yet local authorities spent £17,200 per affordable home.39 The Department asserted that the assessment of value derived from the funding intended for Starter Homes should encompass also those homes delivered for market and not only consider the number of affordable homes that had been built. It argued that these sites were on land that would otherwise be underused and not viable for building without government help, therefore an assessment of value achieved should include the homes built and sold at market value. It explained that, inevitably, affordable homes build on such sites would be more expensive than affordable homes built on less risky sites. It also noted that the local authority funding for Starter Homes was for sites that were already owned by local authorities and so could not be directly compared with other programmes.40 Housing for the homeless, rough sleepers and families in temporary accommodation