Affordable housing targets could be hit as financial institutions, struggling with the credit crunch, tighten lending for new homes. Local government experts warned that when current funding runs out, they will not be able to meet government new-build targets, and a fall in cash from Section 106 agreements will hit council coffers. Ken Thornber, leader of Hampshire CC, told The MJ: ‘Contractors and builders are not coming forward and there is increasing caution. We had 7,000 houses built in the county last year against a target of 6,100. We certainly won't have that amount this year.' LGiU policy analyst, Janet Sillett, said: ‘Delivering effective housing strategies has always been challenging – but never more so than now. Could funding from Section 106 agreements tumble? Repossessions are increasing and homelessness could go up as a result. ‘Many will find getting a mortgage harder, and building societies do not seem to be passing on interest rate cuts. ‘Councils are going to need all their creativity and partnership skills to keep their housing show on the road.'
