Peter Denton says ‘macro-economic pressures’ are hitting delivery

The number of homes started and completed under Homes England affordable housing programmes has fallen year-on-year.

Figures released today show there were 14,812 homes started under Homes England’s programmes in April to September, 8% down on the 16,115 recorded for the same period last year.

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Peter Denton, chief executive of Homes England

Completions also fell by 15% to 12,118 over the same period.

Peter Denton, chief executive at Homes England, said: “Our partners are operating in a challenging environment with many macro-economic pressures, including material, labour shortages, and rising cost inflation. All have impacted delivery. “

Denton also said that a slight decline had been expected due to the “transition” between the end of the 2016-21 programme and homes coming through in the £11.5bn 2021-26 programme.

>>See also: Homes England misses all five housing delivery targets for 2021/22

>>See also: Can HAs keep development going as the rest of the market slows?

The figures are published amid mounting concern about housing associations’ finances and ability to develop at a large scale, due to rising costs , the need to improve existing stock and the 7% rent cap.

The Regulator of Social Housing’s quarterly survey most recent quarterly survey last week showed that housing associations spent 15% less than expected on development in July to September. RSH has warned of an “inevitable” weakening of financial performance and a reduced ability to manage risk.