The average size of local authority hous ing projects has increased from around eight to nine houses in 1999 to some 12 houses this year. I consider that there is scope for further increasing the size of schemes without loss of design, quality or amenity and avoiding an excessive concentration of rented local authority housing. In particular, different household tenures as between affordable, voluntary and local authority rented houses can now be more readily accommodated within larger schemes. I also believe that larger schemes are likely to attract a greater level of interest from building contractors in tendering for local authority schemes.
My Department has now written to local authorities requesting that they consider increasing project sizes and that restrictions set in 1992 on the size of local authority housing projects no longer apply. The limits were set following a period when local authority housing output averaged around 1,000 per year.
I am aware of capacity constraints in the building industry which are impacting on the delivery of the social housing programme, including local authority housing. The final report of the Forum for the Construction Industry on Expanding the Capacity of the Construction Industry was published in October. An interdepartmental group, led by my Department, is now finalising an action plan to increase the overall capacity of the construction industry, including the housing sector, drawing on the forum's recommendations. This action plan will be published shortly.