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Social rent homes fall despite affordable housing surge

The number of new social rent homes fell by 6% last year despite a surge in affordable homes, with development focused on higher priced tenures.

It was the only housing type to record a decline, with the number of new homes at 6,287, down from 6,679 last year.

Figures from the Ministry of Housing, Communities and Local Government reveal a 22% surge in completed affordable homes to 57,485 new homes.

Social rent homes made up 11% of the affordable housing delivery.

Of these, just 351 were funded by government grants, with 3,572 coming from developer section 106 contributions.

The tenure is the least expensive form of affordable housing, offering rents calculated for an individual based on the value of the property and the local earnings.

However, under the pressure of viability it has been outpaced by more expensive affordable rent homes priced at 80% of the local rent.

Developers have delivered consistent levels of social rent housing over the past 10 years, on top of increasing numbers of affordable rent homes.

Last year, there were 27,360 affordable homes from section 106 contributions, including 47% affordable rent homes, 33% shared ownership and 13% social rent.

In comparison, grant funding saw the delivery of 18,619 affordable homes, of which 64% where affordable rent, 30% shared ownership and just 2% social rent.

Government schemes from Homes England, the Greater London Authority and local authorities favour higher priced affordable rent and shared ownership homes.

This has left social rent development to rely on developer contributions, registered provider cross subsidy funding models and local authority finance.

To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette

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