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Social Housing Shortfall Puts Pressure on Private Rental Sector
England’s social housing waiting lists would take 119 years to clear at current construction rates, according to research published by housing charity Shelter. The report highlights that more than 1.3 million households are currently on waiting lists for social homes, while only 12,198 new social homes were built across England last year.
Shelter’s findings reveal a significant gap between demand and delivery of social housing. On average, there are 110 households waiting for every new social home delivered. The annual construction of new social rent homes has decreased by 64% over the past 15 years, while the number of homeless households in temporary accommodation has increased by 155% in the same period.
In 20% of council areas in England, no social homes were built in the last two years, and in 30% of areas, fewer than 10 were constructed. This marks a stark contrast to 1967, when social housing made up 46% of all new homes built in England, with councils providing 97% of these properties.
Shelter identified a £29 billion housing debt transferred to local authorities by central government in 2012 as a key constraint on councils’ ability to build new social homes. The charity states that servicing interest on this debt is limiting construction capacity and forcing councils to sell more homes through right-to-buy schemes than they can afford to replace.
The government has committed to building 300,000 new social and affordable homes, with 60% designated for social rent. This would amount to 180,000 homes, which is approximately six times the number built in the decade leading up to 2024. The government’s plans are supported by a £39 billion Social and Affordable Homes Programme. Shelter and a coalition of councils are calling for the £29 billion housing debt to be forgiven or reduced to enable increased construction.
The shortage of social housing has implications for the private rental sector. Households unable to access social housing remain in or enter the private market, and councils’ increased reliance on temporary accommodation, often leased from private landlords, represents a growing expense for local authorities. This trend is creating demand in specific segments of the property market across England.
Source: PropertyWire