Increase to upfront payments for social housing builders expected

Plans to increase upfront payments to builders working for public sector landlords will be announced by the government next week.

In a move to increase confidence in the sector, housing minister Caroline Flint is expected to increase the amount of money paid to builders before they start work.

The plan has been proposed by the Housing Corporation, which currently pays builders about half upfront and half on completion.

The Financial Times reported that the corporation has £8.4bn to spend on new homes over the next three years.

The government has set a target of building 45,000 social rented homes a year by 2010.

Only 24,000 were built last year.