The government has published details of a £3.5 billion programme of house building over the next three years. More than 70,000 affordable homes will be built, of which 6,000 will be for key public sector workers such as nurses and teachers.

Forum Response: Construction Products Association

Allan Wilén, economics director at the Construction Products Association, said: "The government's announcement of a £3.3 billion of funding for the Housing Corporation over the next two years is welcome news. This is an 18 per cent average increase in funding for the current financial year and should enable the Corporation to lift the volume of new social housing provision from its current poor levels.

"However, government expectations that the programme will fund over 67,000 new affordable homes, a 62 per cent increase on current levels, are ambitious. The government is looking to greater use of modern methods of construction, which will be applied to over a quarter of new homes, to help contain costs. We believe the use of such techniques and innovative construction products can cut overall cost and improve build quality. Nevertheless, the government is unlikely to secure the anticipated jump in new housing volumes without greater use of private finance, with implications for rental levels.

"Whilst a step in the right direction the announced programme falls far short of the needed step change in investment in social housing provision identified in last week's Kate Barker report on housing supply."