The Housing Corporation, which invests public money in housing associations across England, relaxed a rule that requires all housing associations or organisations bidding for funding for new building work to have the running costs guaranteed by the local authority.
James Berrington, policy manager for supported housing at the corporation, said this change would affect a range of young people's projects. He added: "We are confident projects will now successfully bid for new schemes."
The Government's Supporting People Strategy transferred responsibility for the operating costs of supported housing to local authorities two years ago. The change was meant to ensure that all proposals for new schemes met local needs, but it led to spending on new buildings being cut in half during the two years it was in place.
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