A failure to build enough social housing over decades has been one of the key drivers of the housing crisis across the UK, which has seen house prices move out of reach, private rents soar and record-high numbers of families homeless and living in temporary accommodation.
In February this year, government statistics revealed a net loss of 7,723 social homes in England over the previous year, as sales and demolitions continued to surpass the number of homes built, according to analysis from Crisis.
A total of 17,589 social homes were either sold or demolished, with just 9,866 social homes built. Over the past 10 years there has been a net loss of 180,067 social homes in England.
The government has promised to build 1.5 million new homes while in power but has not set a target for how many of those properties will be social homes.
Campaigners, such as Shelter, have repeatedly called for as many as 90,000 social rent homes to be built every year over the next decade to fill the void.
Kate Henderson, chief executive at the National Housing Federation, said Labour’s funding top-up was “hugely welcome” with the £2bn preventing a “cliff edge in delivery of new homes”.
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“Social housing is the only secure and affordable housing for families on low incomes, and the dire shortage has led to rocketing rates of poverty, overcrowding and homelessness,” added Henderson.
“Investment in social housing is not only key to tackling the housing crisis, but is also excellent value for money, reducing government spending on benefits, health, and homelessness as well as boosting growth. Housing associations are ready to work with the government to deliver a generation of new social homes.”
Matt Downie, chief executive of Crisis, called on ministers to commit to making the majority of the 18,000 homes available for social rent in a bid to offer homeless families a secure place to live.
“Today’s announcement is hugely welcome. We hope this signals the beginning of a social housebuilding programme that will radically shift this country’s response to homelessness, putting housing at the heart of the solution,” said Downie.
“With over 240,000 households experiencing homelessness in England alone, we urge the Westminster government to ensure that the vast majority of the initial 18,000 homes are for social rent so that people facing homelessness can access them. If we want to give everyone the foundation of a safe home, we need to build homes that everyone can afford.”
The government will set out a long-term housing strategy later this year. Chartered Institute of Housing chief executive Gavin Smart said that looking to the long-term is “vital” to fix the long-running housing crisis.
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He said: “It is vital that it forms part of a longer-term, strategic approach to delivering the scale of truly affordable social rented housing needed. This investment will provide real value for money.”
The announcement also comes in the week that the government’s planning reforms were debated in parliament and ministers announced plans to train 60,000 construction workers in a bid to fill skill shortages in the sector.
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