One in 10 households in need of housing are stuck on council
waiting lists for over five years as a result of the chronic
shortage of affordable homes, new research reveals today.
A new report, Building post-pandemic prosperity,
commissioned by the Local Government Association, the Association
of Retained Council Housing, and National Federation of ALMOs,
sets out the case for building 100,000 green social homes for
rent each year as part of the recovery from COVID-19, to deliver
net zero housing and “level-up” the nation.
It also reveals that as a result of the pandemic, council housing
waiting lists could almost double next year to as many as 2.1
million households, due to the impact of Covid-related support
schemes winding down and a potential increase in homelessness.
The LGA is calling on the Chancellor to use this month’s Spending
Review to give councils the powers and funding to build 100,000
social homes for rent each year, which would not only achieve a
third of the Government’s annual housing target but improve the
public finances over 30 years by £24.5 billion.
This should include further reform Right to Buy, by allowing
councils to retain 100 per cent of receipts, have flexibility to
combine Right to Buy receipts with other government grants and be
able to set the size of discounts locally.
This comes as the report also found:
- More than 100,000 fewer new homes will be built across all
tenures by 2023 than would have been the case without COVID-19
- A household typically saves £37 a week in social housing,
compared to private rental
- For 1.6 million households, social rent would be the most
appropriate form of housing, as many are not ready or choose not
to buy
The LGA said the delivery of 100,000 new social homes a year
would bring a raft of significant environmental benefits that
would support the Government’s net zero ambitions.
A family moving from an old, poorly insulated and fossil-fuel
heated home into a modern home with heat pump could save up to
£500 a year.
Cllr David Renard, LGA housing spokesperson, said:
“There is a desperate need to build more social housing in this
country, which should be a central part of the Government’s
ambition to level-up and build back better following the
pandemic. Social housing gives families the security and
stability of a decent home, as well as being a route to owning
your own home through Right to Buy.
“Now is the time
to reverse the decline in council
housing over the past few decades. The benefits are clear –
a programme of 100,000 social homes a year would shorten council
housing waiting lists, reduce homelessness and cut carbon
emissions, while delivering a multi-billion long-term boost to
the economy.
“Councils stand ready to work with the Government to tackle our
housing crisis, but need the powers to build homes with the right
infrastructure on this scale in the Spending Review.”
Sarita-Marie Rehman Wall, NFA Chair and Tenant Board Member,
said:
“The struggle to find a good home, and a home you can afford, is
now very real and very tough for millions of people.
“Our national housing shortage isn’t just hitting one small
group. It is creating hardship for all kinds of people in all
walks of life, whether we’re talking about young people just
heading out into adult or family life, or older people whose
income drops at the very time when their need for support and the
right kind of home increases.
“The housing struggle is also real for many of our key workers,
who have to manage on less than generous wages, and for those who
work 40 hours a week and still can’t manage without help. It’s
real for those on precarious contracts that don’t guarantee them
enough hours, and those who have lost savings, jobs and homes in
the pandemic.
“And even if we personally aren’t among these people, this report
shows how the whole country is suffering in some way from lack of
investment in social housing.
“We all need these extra homes. We all need the economic boost,
the new jobs and the investment in our communities that building
them will bring. Everyone will benefit if we change this now.”
ARCH Chief Executive John Bibby said:
'Everyone is concerned about the current shortage of skilled
building workers. Building a new generation of council
housing would not only meet the urgent need for affordable
housing but give councils the opportunity to make a real
difference to local employment opportunities by working with
local employers and colleges to train a new generation of
building workers equipped with the skills to deliver modern
zero-carbon homes."
Notes to editors
Previous polling by the LGA has found that 80 per cent of MPs and
88 per cent of Peers think councils should have more financial
freedoms and powers to build new homes.
Source for one in 10 households on council housing waiting lists
for five years or more: Social housing lettings in
England, April to September 2020 (publishing.service.gov.uk)
Between April and September 2020, there were 76,000 new social
housing lettings. Of these, 13% of households were on the waiting
list for 5 years or more before getting a social letting.
