Can the Coalition claim credit for rise in affordable housing?
On Wednesday's edition of the Today Programme the Housing Minister Grant Shapps claimed that "this year we have built more affordable homes for rent since 1995/1996."
This was almost immediately rebutted by Labour's Shadow Housing Minister Jack Dromey, who argued that "the 60,000 new affordable homes built last year were planned for, financed and started by the last Labour government."
So, who's right?
Analysis
The argument is based on the recent statistical release published by the Department of Communities and Local Government (DCLG) 'Affordable Housing Supply, England 2010-2011'.
In terms of additional rented houses provided in the social sector Grant Shapps is correct. Figures from DCLG show that in 1996/1997 there were 42,470 additional rented properties, compared with only 39,170 this year. However, including intermediate rented properties, which did not exist in 1996, this number goes to 43,690.
Looking at the overall affordable housing figures to which Mr Dromey refers, the release states that 60,630 gross additional affordable homes were completed in 2010-2011, an increase of 5 per cent from the precious year. It also shows that this is the most additional homes since 1995/1996.
As we can see from the graph below (see Chart 1004 here), new affordable housing is nowhere near the levels seen under John Major in 1995/1996. After a sudden drop and steady decline until 2002/2003, it has taken nearly nine years to creep back to 1996/1997 levels.
But just how much of this increase can be attributed to the previous Labour government?
As it happens we looked into a similar row over housing in London last year, when there was something of a tussle between Mayor Boris Johnson and his predecessor Ken Livingstone over who could claim the credit for new affordable homes.
The DCLG report also points out some direct correlations between Labour policy and new affordable homes.
For example, it states that: "the 2,800 new affordable homes provided by local authorities for social rent is a significant increase on previous years and largely reflects the new funding made available for local authority new build through the housing stimulus programme as announced in the April 2009 budget."
The report also notes that "the new government shared equity scheme, FirstBuy, came into effect in 2011 and therefore completions under this scheme will not be observed until 2011-12".
This would suggest that any real impact made by the current Coalition Government on the quantity of affordable housing completed will not be felt for a little while yet.
Conclusion
Housing Minister Grant Shapps is correct in saying that this year we have seen the highest amount of affordable housing for rent completed since 1995/1996.
However, attributing this to the current government's policy seems a little premature as there simply hasn't been enough time for the changes they have made to have any real effect on the number of affordable homes completed in 2010/11.
Jack Dromey's assertion that the last Government had a hand in the figures is justified. The timeframe involved means that we are seeing the completion of building projects started while they were in power.
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