Affordable housing under threat from credit crunch
Three million affordable houses may be under threat because of the financial crisis
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Monday, 03, Nov 2008 10:46
The three million affordable houses promised by Gordon Brown when he came to power may be under threat because of the financial crisis, MPs said today.
The Environmental Audit committee is now calling for a reassessment of the three million house-building target in the wake of the economic downturn.
"Government targets for house-building are intended to make homes more affordable by increasing supply. But these ambitious targets were agreed in a time of economic optimism and easy credit," said Tim Yeo.
"Clearly the assumptions on which the three million target was based must be reviewed in the current climate."
The committee report found that with the downturn of the housing market greenfield sites could be developed unnecessarily unless the government changes its targets.
"The government needs to ensure that in the current market downturn, an excess of land is not made available to developers, which could lead to greenfield land being developed in preference to brownfield.
"Once greenfield land is released for development, this land will be lost forever," Mr Yeo said.