Warning on affordable homes scheme

A public spending watchdog has warned of "key risks" in the Government's plans for building thousands of new affordable homes.

Housing providers face having to borrow extra cash and are being allowed to ramp up rents after ministers cut funding for building projects by around two-thirds. But shifting the funding burden on to councils, arm's-length organisations and housing associations means they could be overstretched if they are hit by increased borrowing costs, according to the National Audit Office (NAO).