90,000 new social homes a year are ‘achievable’ say MPs

A cross-party group of MPs has said it is possible to meet the country’s housing needs with 90,000 new social homes a year, but only with government support.

In a report out today (27 July), the housing, communities and local government committee said a boost in house building would provide a much-needed boost to jobs during the economic uncertainty caused by the pandemic.

The report warns the nation is in a social housing crisis, with 83,700 households in temporary accommodation, an increase of 82% since 2010, and the number of people rough sleeping has gone up 165% in the same period.

Since 1981, over a million homes have been lost from social housing stock and in 2019 only 6,827 new homes were built.

In order to remedy this shortage, the report calls on the government to invest in social housing, and provide the financial support required to dramatically ramp up provision.

The MPs estimate it would require £10bn of investment from Whitehall, along with reforms to the way the government disposes of public land, viewing it as something that can be used for the public good rather than simply a source of revenue.

The report also recommends the government reform the Right to Buy system, so councils receive 100% of receipts, and the time limit for using them be extended from three to five years and have the flexibility to combine receipts with other forms of funding.

‘The collapse of social housing building since the 1980s has had terrible consequences on our ability to provide adequate housing for those who need it,’ said committee chair, Clive Betts.

‘The last decade has seen a surge in families living in temporary accommodation and people rough sleeping, while at the same time we have come to rely on the private rental sector to shore up the creaking social housing capacity.

‘We need at least 90,000 new homes a year to get to the level of social housing we need, but this is achievable. We believe this target can be reached in five years, but only if the Government gives providers sufficient financial backing and reforms the wider landscape that social housing providers operate in. They must ensure that the money is there to build, that land is available to build on and allow flexibility to buy surplus housing where it is not needed in the private sector.

‘The system must ensure that any housing sold via Right to Buy is replaced like-for-like, and that local authorities are allowed to retain all the receipts produced to enable them to achieve this,’ he added.

‘This must be a long-term commitment to creating a social housing system that meets long-term demand. It will be challenging but it is achievable.’

The full report – Building more social housing – is available to read here.

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