HCA to build 'at least' 50,000 new affordable homes next year

Homes & Communities Agency (HCA) boss Sir Bob Kerslake has pledged that his organisation will deliver at least 50,000 new affordable homes in 2009/10 despite difficult market conditions.

The HCA chief executive made the prediction as he unveiled the agency's preliminary end-of-year results.

Kerslake said that the body, which began operating on 1 December after inheriting English Partnerships and the Housing Corporation, delivered 50,000 new, affordable homes. It also met its target to invest £3.9bn on its national housing and regeneration programme.

"It's a tough market out there. To deliver these results is a credit to all of the sector that is involved but no-one is under any illusion that the year ahead is going to be a challenging year," he said.

But he added that he was confident that the agency would be able to deliver at least as many houses in 2009/10 as it had in 2008/09, although he could not give precise numbers until it has a reached a funding settlement with the government.

The homes are likely to be a mix of rent-to-buy and low cost homeownership (LCHO) homes, although the mix of rent-to-buy homes is likely to increase, as housing associations become more wary of building LCHO homes.

HCA 2008/09 preliminary outturns:

National Affordable Housing Programme:

• Completions, Rent - 27,501 (105% of target)
• Completions, LCHO - 19,743 (91% of target)
• Starts on site, Rent - 30,389 (101% of target)
• Starts on site, LCHO - 10,787 (77% of target)

Property and Regeneration:

• Brownfield Land Reclaimed - 327
• Housing Starts Commissioned - 3,144
• Housing Completions - 6,201
• Employment Floorspace (Sq m) - 452,378
• Private sector investment (£m) - 1,025