Utility delays are affecting completions of affordable homes

“A number of landlords struggled to hit the 31 March ‘drop dead’ date for completions under the 2011/15 Affordable Homes Programme. Under the terms of the scheme, landlords had to complete their home – with water, gas and electricity connected – by the deadline or face grant deductions.

However, in 350 cases where the deadline was missed, the Homes and Communities Agency (HCA) granted waivers as landlords were able to demonstrate that unexpected delays to utilities works were to blame. The waivers, which applied to a number of homes but not whole schemes, were not given for any other reason than utilities delays.

Social landlords are now concerned that a repetition of the problems could hamper their efforts to build homes under the 2015/20 Affordable Homes Programme. It is understood there have been instances of delays at the beginning and end of the 2011/15 programme, when landlords have been waiting for water, gas or electricity to be connected.

JV North, a consortium of 10 landlords in the north west of England which completed 1,075 homes under the programme, this week called on the government to talk to utility companies about the problems. Nigel Wilson, chair of JV North and chief executive of Wythenshawe Community Housing Group, said: ‘As home builders, we need more control of timetables so we can plan it into schemes.

‘The current situation puts us at risk and potentially causes a loss of grant income due to no fault of our own.’

A spokesperson for the mayor of London, who administers the Affordable Homes Programme in the capital, said ‘partners have reported delays with utilities’. He said the mayor is now asking development partners, including landlords, to provide examples ‘so that we can take the issue up at a London-wide level’. The spokesperson however said no waivers have been granted in London.

Under the terms of the waivers, which were agreed on a case-by-case basis, landlords had to complete the work by another set deadline. No landlords outside of London are understood to have had grant deducted.

A spokesperson for the Energy Networks Association, which represents electricity and gas companies, said: ‘We would encourage developers to engage locally with the utility companies….early in theplanning process.’

A DCLG spokesperson pointed to guidance it published in December setting out how developers and utilities companies should work together on developments.