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 13 October 2008 08:52 BST

Social housing waiting list could hit 5m

Monday, 19 May 2008 13:24
Social housing waiting list could rise to five million

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The economic slowdown could lead to five million on the waiting list for social housing in less than two years.

The report by council leaders found the credit crunch could lead to two million households needing help, which councils may struggle to meet.

Chairman of the Local Government Association (LGA) environment board, Cllr Paul Bettison, said: "Although house prices are slowly falling, they are still beyond the reach of many. The slowdown in private sector house building will eventually affect that amount of affordable housing that is being built.

"This will mean fewer new social homes at a time when there will be more demand for them.

"Social housing has to be a top priority because the harsh reality is that fewer people are getting on to the housing ladder."

According to social housing body National Housing Federation (NHF), housing associations often rely on the private sector to build new homes, some of which are earmarked for social housing projects.

With a decline in new projects as the housing market slumps, any rise in demand for affordable housing will become harder to meet.

A spokesperson from the NHF said: "I think it is going to be difficult and the government is going to have to be careful if it is going to meet its target for social homes."

According to data, local authority and housing association new-build over the last decade is at its lowest since 1947.

To alleviate some of the pressures on the current social stock, the LGA is calling on government to allow councils to borrow on the open market in the same way that Housing Associations have freedom to borrow, reform finance and give authorities greater flexibility to allocate housing based on local area need.End of story


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