DLUHC underspend on building safety a ‘devastating blow’, says CIH

Andy Hulme, chief executive of G15 landlord Hyde, admitted that the news on the overall underspend was “disappointing”. 

He said: “It’s an extremely challenging time for the sector financially. We are seeking to meet a range of competing priorities in the interests of the people we provide homes for.

“Learning that funding which could have played a part in supporting the sector has been unspent is, therefore, disappointing.” 

He added: “We expect to see this funding made available to the sector again at the earliest possible opportunity.”

According to The Guardian, DLUHC officials said the department was unable to spend the money due to higher interest rates and housing market uncertainty post-COVID.

The National Housing Federation (NHF) said the underspend highlights why a long-term strategy is needed on housing.

Marie Chadwick, policy leader at the NHF, said: “[The fact] that so much funding has gone unspent demonstrates why it is so important that the government commits to a long-term plan for housing. 

“We need a forward-thinking strategy, alongside certainty and stability of funding, to ensure that we can deliver the social housing the country urgently needs.”

The Labour Party also hit out after the revelation. Reacting to the news on Twitter, shadow housing secretary Lisa Nandy said: “This absolutely beggars belief. We are in the middle of an acute housing crisis, even the housing secretary says the system is ’broken’, and yet the government was unable to spend a third of its housing budget. The Tories have simply given up.” 

In a statement, a DLUHC spokesperson said: “These are multi-year funding programmes that are being spent flexibly – meaning some money can be moved into future years depending on demand and the wider economic climate.

“We have a strong record on housebuilding – with more than two million homes delivered since 2010. Our target of delivering 300,000 homes per year remains and we are fully committed to funding and delivering our programmes that help us meet that target, including the £11.5bn Affordable Homes Programme.”

Update: at 09.59am, 14.07.2023

A previous version of this article stated that £355m was handed back to the Treasury meant for affordable housing. This has been corrected to say £255m was returned.