It’s Grim Up North As Funding For Housing Slides

There is set to be a “dramatic fall” in the share in government funding for new homes in North England, according to reports from the regions housing associations.

Home for the North, an alliance of 17 associations, said that if the funding was to be cut, the region’s share would fall to half of what it was 20 years ago.

In 2018, the government announced 80% of investment would go to areas where rents and prices were the highest. Homes for the North said it would mean councils in the vast majority of the north of England would only be able to bid for a share of the remaining 20%, alongside large parts of the Midlands. A report compiled for the group said that, while northern regions received 24% of government housing funding 20 years ago, this could fall to about 11% by 2023.

The group’s chair, Carol Matthews, said: “The current strategy directs the lion share of public investment to where homes are already too expensive, adding heat to the housing market. This misses a huge opportunity to make some smarter investments in northern communities, where the economic and social impact will be higher.”

On the news, Nigel Wilson, group CEO of Sunderland-based Gentoo Homes, said it would hold back regeneration. He said: “Investment in the Northern Powerhouse requires new housing to make sure we can be an economic driver for the whole country. We can’t have the new factories without people and homes.”

However, the Ministry for Housing, Communities and Local Government defended the funding policy. A spokesman said: “The government is determined to build the homes this country needs, and we’re working with authorities across the North to ensure more people can achieve their dream of home ownership.”

“But some parts of the country are much less affordable than others, so it’s right our funding is directed so homes can be built where they are needed most and where demand is greatest.”