Oral question asked in the House of Lords, by Baroness Hamwee (Liberal Democrat). It was answered on Thursday, 12 March 2009.

Housing: Rented Homes

Question: My Lords, I know that the Minister will agree that it is important to support the construction industry not just for the present but for the long term, so that skills are not lost when we reach an upturn. What support are the Government giving to smaller housing associations which are struggling because lending is not available to them?

Answer: My Lords, we rely so much on housing associations to provide social rented homes and it is extremely important that we are as positive, supportive and flexible as possible. We are allowing the HCA limited flexibility to increase levels of grant to housing associations to compensate for the difficulties of negotiating Section 106 agreements, for example. So we are doing something immediate and positive there, which will be linked to an agreed programme of future activity. We are also giving ourselves complete flexibility to switch unsold shared ownership stock to rent and HomeBuy. Those are two very positive actions that will help the RSLs step up to the plate.

Secondary information