In 2010 the Conservative-led coalition cut funding for subsidized housing by 60% and redirected the remaining money away from social rent and towards more expensive “affordable rent” housing. The cuts took a few years to complete as councils and not-for-profit housing associations completed developments that used money provided by the previous Labor government. However, figures published by the Department for Upgrading, Housing and Communities (DLUHC) show that 40 local government areas neither built nor acquired (either through councils or housing associations) new social rented housing between 2016-17 and 2020-21. most recent year for which data is available. These areas are scattered across England and include Peterborough, Luton, the Isle of Wight, Spelthorne in Surrey and parts of Greater Manchester, as well as rural areas. The coalition government also restricted the ability of councils to borrow to build houses, further hitting supply. The figures do not take into account the impact of policies such as Right to Buy on reducing social rent. Kate Henderson, chief executive of the National Housing Federation, which represents housing associations, said: “There is a chronic shortage of social housing in England. We know there are 4.2 million people in need of a social home across the country and this is likely to rise rapidly as a result of the cost of living crisis we are facing. “Housing associations are ambitious to build much-needed social rented homes at scale and pace. However, over the past decade, government subsidies have prioritized affordable home ownership and affordable rent. Social rented homes are much more expensive to deliver because of the lower rents, so most housing associations cannot afford to build these homes without access to specific funding.’ DLUHC figures show that 122 local authority areas – more than a third of all councils in England – each saw fewer than 20 social rented properties built or acquired over the five-year period. Many areas saw much more housing construction at “affordable rent” levels – which can be set at up to 80% of market rents. Across England, affordable rented homes cost almost 40% more than social rents, but this hides wide variations. London has been able to build more social housing after negotiating a separate deal with the government, recognizing higher housing costs. But even in the capital, Richmond added just 16 social rental units and 137 affordable rental units in five years. Homes in Richmond rented under the national affordable rent scheme cost an average of over £200 a week, more than 50% higher than local social rents. The council’s social housing waiting list has grown significantly over the past five years. “Eighty per cent of an arbitrary market rent can be extremely high in many different places, so people in desperate need end up being insecure because they can’t afford it,” said Charlie Trew, head of policy at the charity. for the homeless Shelter. The government has now changed the funding scheme to encourage the building of social rented homes and there are signs that the rate of development is picking up – but the funding is concentrated in areas where the difference between average social rents and private rents is at least £50 a week . “The 50-pound rule is antithetical to ‘raising,’” Trew said. “The areas affected will be cut off from social rent funding until at least 2026. Prices will rise, local people on low incomes will be priced out, homelessness will increase.” The DLUHC said: “We understand how important social housing is and the Secretary of State has been very clear that we need to build more social homes across the country. “Our £11.5 billion affordable housing program will help deliver more of the truly affordable, quality homes this country needs and since 2010 we have built almost 600,000 affordable homes in England, including 157,000 for social rent ». Peterborough Council said the low number of new social rented homes was down to government policy. Richmond, Dorset and Luton councils have said they are developing new social rented homes. Spelthorne council said housing associations were failing to provide enough social housing and the council had set up its own affordable housing agency in response.
