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Housing budget 'set for 50% cut'
19/10/10
Edited by Andy Jowett.Builders have been dealt a blow by reports the government is planning to cut the budget for social housing in England by over 50 per cent in the comprehensive spending review.
The BBC said there will be an end to council homes "for life", with flexible tenancies introduced for those moving into residential property run by a local authority or housing association for the first time.
Under this arrangement, the needs of residents will be periodically assessed to judge if they still need supported accommodation.
In August, prime minister David Cameron said long-term tenancies mean people whose circumstances have improved to the point they can afford to buy or rent in the private sector are occupying social housing desperately needed by families stuck in inadequate or overcrowded dwellings.
At the time, he said there were 1.8 million households on the waiting list for a home.
The BBC said there was some hope for builders despite the planned cuts, as the government still intends to fund the construction of 150,000 new properties.
Ministers intend to fund the programme by charging existing tenants "nearer the going market rate", it added.
