English Partnerships admits slump in housing schemes

English Partnerships (EP) has privately acknowledged that it is finding it increasingly difficult to tempt developers into new housing schemes, fuelling fears that the government may not reach its housebuilding targets.

Speaking at the Chartered Institute of Housing annual conference last week, housing minister Caroline Flint said the government would not back down from its aim of building 240,000 new homes by 2016.

"This is still our target and it is based on good evidence given in the Kate Barker report," she said.

But a draft copy of EP's corporate strategy for 2008/09, seen by CJ, warned that developers were "increasingly reluctant" to touch housing-led developments, warning that this was likely to affect output of new homes.

Meanwhile, the strategic document, which has still to be finalised and signed off, cautioned that EP's financial resources are at their lowest for "several years". They are expected to fall to a low of £527m in 2008/09, down from £566m in the previous year.

But speaking to CJ, EP chief executive John Walker said that while times were tougher, the organisation was doing all it could to facilitate new developments.

"It's going to be difficult, but we are trying to be realistic in view of the current situation," he said.

"One of the things we are looking at is, instead of big sites for 1,500 or 2,000 units, we are now putting in infrastructure in smaller parcels," he added.

Meanwhile, he said that the state of EP's financial resources was not a cause for concern. "Our programmes are very lumpy. Some years we spend more than other years. We're not surprised by that," he said.