Pledge on Walsall housing despite cash cuts
A housing association in Walsall has pledged to continue to build hundreds of new homes in the borough over the next three years, despite the pressures of planned social housing rent cuts.
Chancellor George Osborne's intention to cut social housing rents could pose a serious challenge to housing association and local authority revenue streams, with a knock-on effect on building schemes.
The Government is planning to reduce rents in the social housing sector by one per cent a year for four years from 2016.
Bosses at Walsall Housing Group said the proposals will have a significant impact on its business plans and a review of services is currently being carried out. But they also said the housing group is firmly committed to building hundreds of homes by 2018.
Gary Fulford, group chief executive at the housing group, said: "Government plans to cut social rents will have a significant impact on our business plan.
"We are in the process of reviewing services to deal with the challenges the rent cut presents and we are looking at where we can make savings and further efficiencies to enable the ongoing delivery of our ambitious growth plans and the maintenance of existing homes."
He said the housing group is currently on site with almost 500 new homes and is committed to building 2,000 by March 2018, adding: "We are determined to deliver this large-scale development programme.
"We will continue to work closely with the National Housing Federation, the body that campaigns for affordable housing in England and represents the work of housing associations, to respond to these proposals for the benefit of our customers."
It was recently revealed that Cannock Chase Council faces a £6 million funding shortfall over the next four years due to the planned changes.
Proposals to create dozens of homes across the area and carry out home improvements have been put in jeopardy.
It emerged last month that an extra 2,000 homes need to be built in Walsall to cope with demand for new properties, in addition to those already granted planning permission.
Sites across the borough are now being looked at for potential residential use over the coming years.
Thousands of new homes are already in the pipeline but more are needed to meet the requirements for almost 12,000 properties.
It forms part of the Black Country Core Strategy (BCCS) and a site action plan being drawn up by Walsall Council.
Major housing schemes in the borough include land at the former Goscote estate being lined up for more than 300 new properties.
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