Local Authorities await explosion of social housing applicants

Permalink: Local Authorities await explosion of social housing applicants
by Gill Montia

The Local Government Association (LGA), which promotes the interests of just under 500 local authorities, is warning that nearly one in 10 people in England and Wales could be on a waiting list for social housing by 2010.

In 2007, waiting lists in England and Wales comprised 1.6 million households, an increase of one million on 2001.

The Association believes that a slowdown in the economy combined with the credit crisis could mean that two million households, or 5 million people, will be in need of social housing in two years’ time.

Additional pressure is expected as the credit crisis leads to a rise repossessions and a fall in mortgage approvals.

The situation could be exacerbated by a slump in new housebuilding that will reduce in the number of new affordable homes available.

At the same time, housing associations are likely to continue to experience difficulties in securing loans to create new affordable housing.

Nearly one-half of the LGA’s members are insistent that their current allocations policies cannot cope with an increased demand for social housing and the Association is now calling on the government to allow councils to borrow on the open market and reform housing finance.

It also wants local authorities to be allowed greater flexibility in allocating housing based on local area need.