Friday, November 17, 2017

Council Housing - A New Scheme

The number of council homes in Britain has fallen to a new record low, with fewer properties to rent from local authorities than at any point in almost 50 years. Stock of council houses across England, Scotland and Wales has dropped to just two million and has now more than halved in the last 20 years, according to new government statistics. More than 170,000 council homes have been lost since 2010 alone. The majority are likely to be properties for social rent, which are offered to local people at around half the cost of private market rents.  

The loss is the result of a range of factors, but commentators have especially highlighted the Right to Buy policy that sees council house tenants given a state subsidy of up to £100,000 to help them buy their home. Despite repeated promises from ministers, only one new home is being built to replace every five sold under Right to Buy. The number of council houses in Britain has now fallen by 69 per cent since the policy was introduced in 1980 – down from 6.5 million. It had risen continuously up to that point. The Local Government Association (LGA) warned earlier this week that enough homes to house the population of Oxford have been sold off under Right to Buy since 2012. – 54,581 homes have been sold but just 12,472 built to replace them.


As the number of council homes has fallen, more and more people have been forced to rent from private landlords and pay rents that are, on average, up to 50 per cent more expensive.  The number of private renters has doubled in the last 20 years and now stands at 5.4 million. It has increased by a million – or 23 per cent – since 2010. Many more council homes are forecast to be privatised as a result of measures in the 2016 Housing and Planning Act, which forces councils to sell off their most valuable properties and extends the Right to Buy to housing association properties. 


Since 2011, government ministers have also mandated the building of “affordable” homes, which are around 30 per cent more expensive, instead of social homes. At the same time, state funding for new social housing has plummeted and grants to help councils build homes have dried up.


Councillor Martin Tett, the LGA’s housing spokesman, said: “There is no way to solve our chronic housing shortage without a renaissance in council house building."


About 75,000 new homes for social housing should be built in Wales in the next 20 years, according to Welsh housing associations. The Welsh Government wants to build 20,000 affordable homes by 2021 but the body representing social landlords said that should be doubled. "We do know we're not building enough," said Community Housing Cymru (CHC) chief executive Stuart Ropke.

No comments: