More seeking housing through local authorities

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by Kay Murchie

Ministers have declared that the rise in property prices in the UK is resulting in more people look for homes through housing associations or local authorities. Shared ownership schemes are also becoming more popular.

Grant Shapps, the shadow housing minister, commented that those on low and middle earnings are now finding that homes are unaffordable. After soaring council tax and increases in stamp duty, home ownership is dropping for the first time since records started.

Official figures reveal that an increasing amount of people are getting anxious to find a home and are looking to their local council for help. Rents and house prices are escalating and, as a result, town halls are being inundated with applications for housing. Applications have increased massively by about 500% since 1996 in 3 London boroughs – Barnet, Redbridge, Barking & Dagenham

Councils with increases of more than 100% include Kensington & Chelsea, Sutton, Kingston, Ealing, Westminster, Croydon, Harrow, Haringey, Havering, Hillingdon, Newham and Tower Hamlets.

Professor Stephen Nickell, chairman of the Government’s new housing agency, the National Housing and Planning Advice Unit, remarked that young middle-class people are having to depend on the state for their housing.

Yvette Cooper, the Housing Minister, is to issue a housing green paper that plans to introduce the largest home building scheme since the 1970’s, increasing the rate from 200,000 to 240,000 per year.

A spokesperson for the Department for Communities and Local Government stated that the supply of social housing has already increased by 50% and we acknowledge the need to go further. £20 billion has already been invested in social housing.