Lords scrutiny delays start of homes agency

The establishment of the Homes & Communities Agency (HCA) faces delay following protracted discussions in the House of Lords over the legislation required to set it up.

The Lords scrutinised just 88 of the 324 clauses of the Housing & Regeneration Bill in the first six sessions of the committee stage and housing professionals say the process is now unlikely to be completed before the summer recess in the third week of July.

National Housing Federation parliamentary officer Henry Gregg said: "If it does not get royal assent before December, it will slow down the formation of the HCA and the Tenant Services Authority."

National Federation of ALMOs policy officer Gwyneth Taylor added: "It looks unlikely that the bill will get royal assent before December now." 

Sir Bob Kerslake, former Sheffield City Council chief executive, who will be the first chief of the HCA, had hoped to get operations running by December, but it now appears  the original April 2009 start date is more likely.

The agency is charged with hitting Prime Minister Gordon Brown's flagship target of building three million new homes by 2020. With the credit crunch hitting developers, banks and potential buyers, many observers fear Sir Bob has a tough job on his hands.