Govt warned of social housing crisis

Call for 20,000 extra social homes

Tuesday, 19, Jun 2007 12:00

Charities are calling on the government to radically increase the number of available social homes, as the council housing waiting lists threatens to rise to two million.

At present, 1.6 million people are waiting for social housing, but Shelter warns this could rise by a further 400,000 by 2010.

Shelter warns Labour has not done enough to tackle the "chronic shortage" of social housing since it came to power in 1997.

The charity calls on Gordon Brown's successor to commit to more social housing in this autumn's Comprehensive Spending Review. It claims 60,000 extra social homes are needed over three years, in addition to existing commitments to build 150,000 social homes.

Adam Sampson, Shelter chief executive said: "Gordon Brown has now signalled that housing will be one of his key priorities when he becomes prime minister next week.

"These figures show the extent of the challenge he faces and how many more hard-working families who will suffer if he fails to deliver on his promise to build the social homes this nation needs."

In a move welcomed by Shelter, communities secretary Ruth Kelly today announced the creation of a new housing agency – Communities England – to help local areas to increase the supply of private and social housing.

Ms Kelly said: "We need to build new homes across the country. Communities England will spearhead our efforts and play a key role in supporting local communities in delivering the homes we need for future generations."

Speaking in Harrogate, Ms Kelly announced further measures designed to empower social tenants, creating a new watchdog to penalise failing landlords.

The watchdog will be able to impose penalties and sanctions on failing landlords, including the power to cap rent rises and in extreme cases change the management.

The recommendations follow an independent review of social housing by professor Martin Cave of Warwick University.

Ms Kelly said: "In 1997, the government inherited a dilapidated housing stock and we have now spent around £20billion in transforming it. The next challenge is to increase housing supply and give the responsible majority of tenants a far greater say on how their estates are run.

"This major review of regulation will ensure a better system to help protect the interests of the eight million people currently living in social housing.

"We need to move to a system that puts tenants in the driving seat and that minimises the burdens on good social landlords."

Charities have also been campaigning to raise awareness of the housing crisis in the private sector. Shelter today called on the government to hold a review of the buy-to-let scheme and its affect on first-time buyers.

The Chartered Institute of Housing (CIH) argues the tax-relief on buy-to-let investments is hampering first-time buyers.

At the CIH's annual conference, president Paul Diggory said the growth in buy-to-lets is contributing to the housing crisis and called on the government to remove the tax benefit.