Ahead of the Chancellors Spending Review later this month a new
report,Building post-pandemic prosperity, jointly commissioned by
ARCH, the Local Government Association (LGA) and the National
Federation of ALMOs (NFA), sets out the case for building 100,000
green social homes for rent each year as part of the recovery from
COVID-19, to help deliver net zero housing and "level-up" the
nation.
As at March 2020 there were already over
1.1 million households on council housing waiting lists with one in
ten households in need of housing stuck on council waiting lists
for over five years as a result of the chronic shortage of
affordable homes. The report estimates there are a further 500,000
families with hidden housing needs than currently recorded on
housing waiting lists.
The research reveals that as a result of
the pandemic, the number of households on council housing waiting
lists could increase significantly over the coming months due to
the impact of the winding down of Covid-related support schemes and
a potential increase in homelessness.
Giving councils the powers and funding to provide 100,000 social
rented homes each year - a third of the government's current target
of building 300,000 new homes each year - would deliver a
return of £24.5 billion into government coffers over 30 years
through savings in housing related support, tax yields from
builders and supply chains and reduced spending on the NHS as
people move into decent affordable green housing.
The report's research argues that investing public money into
construction of social rented housing would support the
Government's levelling up agenda by creating jobs, both nationally
and for the communities most in need of new, good quality and
affordable housing. It would enable the targeting of investment to
less prosperous local economies and hold it, in the form of new
homes and the income they generate, in the national
infrastructure.
Arch is supporting the LGA's call 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 would support the Government's ambitions
to "Level Up" and improve the public finances over 30 years by
£24.5 billion.
Further reforms to the 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 would
assist.
Launching the report, John Bibby,
ARCH Chief Executive, said:
"The supply of social rented housing is simply not keeping
up with demand. This report highlights that, unless action is taken
now to build more social rented housing, the situation for many
households on low incomes and in insecure employment is likely to
become worse over time".
"The Government accepts that the housing market is broken
and if the promises to "level up" and "build back better" are to
mean anything for those seeking a secure, affordable home then we
must start immediately by addressing the needs of the 1.1 million
households already on council housing waiting lists and the 95,000
homeless households living in temporary accommodation".
"This report highlights the benefits that building social
rented housing will bring to those who simply cannot afford to buy
or rent in the private housing market and the significant economic,
social and health benefits that investment in a building
social housing will bring to post-pandemic Britain".
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."
Click
here to download a copy of the report "Building
post-pandemic prosperity", jointly commissioned by ARCH, the Local
Government Association (LGA) and the National Federation of ALMOs
(NFA),