Affordable homes ‘depressingly unattainable’ and attempts to fix housing crisis ‘not good enough’, say MPs

Fewer homes could be completed than currently forecast because of building cost inflation and shortages of materials and labour, National Audit Office warns

Labour MP Meg Hillier said the shortfall of affordable homes could grow due to inflation and labour shortages (PA Wire)

Government attempts to fix the housing crisis are “not good enough” and affordable housing is “depressingly unattainable” for ordinary people, the chair of the Commons Public Accounts Committee (PAC) has said.

Labour MP Meg Hillier, who has chaired PAC since January 2020, was responding to a report from the National Audit Office (NAO) on the government’s efforts to build more affordable homes.

The public spending watchdog said the government’s Affordable Homes Programme had a forecast shortfall of 32,000 in the number of homes to be delivered, when compared to the 2016 and 2021 targets.

There is a further risk that fewer homes could be completed than currently forecast because of building cost inflation and shortages of materials and labour, the NAO said.

The programme – run by the Department for Levelling Up, Housing & Communities (DLUHC) – has also not considered how to support wider government objectives, such as the net-zero commitments.

It has not defined wider outcomes it wanted to achieve such as reductions to fuel poverty, or mixed communities, the report said.

And the scheme – which has been running since 2015 – lacked strong incentives for developers to build in high areas of housing need.

In addition, the NAO report added that areas with high housing need that have been identified by DLUHC are not receiving the high proportion of affordable homes they need.

Meg Hillier MP, Chair of the Committee of Public Accounts, said: “The government’s attempt to fix the housing crisis, particularly the lack of affordable housing, is not good enough.

“The Department for Levelling Up, Housing and Communities is expecting a shortfall of 32,000 new homes across its affordable homes programme. An economy of rising inflation and labour shortages means this number could grow.

“DLUHC needs to get a grip by delivering on the targets it set itself and better directing support to those who need it the most.

“As it stands, the chances of millions of ordinary people accessing affordable housing is depressingly unattainable.”

The Affordable Homes Programme provides grant funding to housing providers in England to support the costs of delivering such properties.

The DLUHC forecasts it will spend around £20.7bn on new grant-funded homes, scheduled to be completed between April 2015 and March 2032.

Gareth Davies, the head of the NAO, said: “Since 2015, the Department for Levelling Up, Housing and Communities has made improvements to the running of the Affordable Homes Programme, but there are still areas it needs to address.

“It should reassess targets to ensure the programme is delivering affordable homes in areas that need them the most.

“It should also use the programme to bring about greater value to other parts of Government, and advance wider efforts around net zero.”