Housing Corporation chief executive Jon Rouse has promised developers a more flexible grant regime as long as they do not sit on their assets.

Rouse, speaking at last week's Chartered Institute of Housing conference, outlined the corporation's initial proposals for revamping its investment programme.

The corporation is undertaking a review of its national affordable housing programme after criticism that this year's first round was overly bureaucratic. Rouse said the body would be more willing to reward developers prepared to take commercial risks rather than those hoarding assets, such as landbanks and cash reserves.

He said the corporation would introduce more flexible grant distribution mechanisms to help developers bring forward or defer schemes as and when opportunities arise.

As part of this more flexible approach, he said the corporation was considering entering into longer-term funding arrangements of up to five years with developers, such as those on offer for strategic sites such as the Millennium Dome.

"We want to make sure that we reward housing associations and developers that give us a commitment," he said, adding that the corporation aimed to take a much longer-term strategic approach to funding large-scale regeneration and development projects.