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The companies set to carry out the Government’s £4 billion affordable housing scheme over the next two years have been selected. This is the first time housebuilders have been able to apply directly to the Government’s Housing Corporation, and private players will unite with independent not-for-profit housing associations to deliver 84,000 homes for the National Affordable Housing Programme.

Quoted players among the approved partners include FTSE 100 giant Persimmon, as well as fully listed peers such as Taylor Woodrow, Barratt (see page 26) George Wimpey, Bellway and Lovell, the affordable housing arm of Morgan Sindall.

Numis Securities’ Rachel Waring claims these ventures will benefit from gaining a faster route to begin building, adding that ‘the money and the profit they earn will be reported a lot quicker than if they had to apply to the housing association and go through that route.’

Peter Redfern, chief executive of George Wimpey, the biggest winner of direct funding with £31.7 million, was naturally delighted with the grant. ‘Amongst private developers there is an increasing commitment to drive quality and value for money and, at the same time, increase the supply of affordable housing,’ he commented.

Taylor Woodrow received the next largest injection of £11.3 million, followed by Persimmon with £5.8 million.

Elsewhere, there was good news for the property sector as Northern Rock bank reported a ‘gentle trend’ of first-time buyers returning to the housing market since late last year. The bank forecasts the UK gross mortgage market will grow over four per cent to about £300 billion this year on sound UK economic fundamentals.