Mixed-tenure housing model 'cannot continue'

The traditional way of building mixed-tenure neighbourhoods is no longer sustainable, a government minister has claimed.

According to junior housing minister Ian Wright, housing associations and developers should not be able to continue using cross-subsidy from private-sale homes to deliver affordable homes in mixed estates.

Speaking at the Labour Party conference being held in Manchester, Mr Wright said: "The current business model has failed: it is not suitable to the current circumstances. We are entering a new era, and I believe that different forms of shared ownership will come to the fore."

He also said that section 106 contributions have dried up and the current social housing model fails if mortgages are not being agreed.

Building.co.uk reports that housebuilding starts have hit a record low as prices have dropped 12 per cent and new mortgage lending has fallen more than 70 per cent.

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