Social housing in the UK has been a critical issue for decades, with the demand consistently outstripping supply. This article aims to provide a comprehensive overview of the current state of social housing in the UK, based on recent statistics and government reports.
Current Social Housing Scenario
As per the latest data from the Office for National Statistics, the UK saw the completion of 45,050 dwellings from January to March 2023, with England contributing the largest share of 37,350. The financial year data ending in March 2023 shows a total of 210,320 dwellings completed across the UK, with England again leading with 174,600 dwellings [oai_citation:1,House building data, UK – Office for National Statistics https://www.ons.gov.uk/peoplepopulationandcommunity/housing/articles/ukhousebuildingdata/januarytomarch2023#:~:text=The%20latest%20house%20building%20statistics,1%2C230%20in%20Northern%20Ireland However, these numbers do not specifically distinguish between social housing and other types of dwellings.
The Gap Between Supply and Demand
The Local Government Association (LGA) highlights a stark disparity between the number of social homes built and the need. Over 1.2 million households are on the waiting list for social homes in England, and almost 100,000 households are living in temporary accommodation, including 120,710 children. The LGA emphasizes that the construction of new homes has failed to keep pace with the population growth, demographic changes, and socio-demographic shifts. This shortage has significantly impacted low-income and vulnerable families, as rents and property prices have risen much faster than incomes.
Government Initiatives and Challenges
The government’s Affordable Homes Programme is injecting £11.5 billion from 2021-26 to support the development of affordable housing, aiming to fund 36,000 homes a year, and 180,000 homes in total. However, the LGA calls for a more focused approach towards social rent homes, suggesting modifications to the programme to better address the acute need for social housing [oai_citation:4,Debate on the future of social housing, House of Commons, 19 April 2023 | Local Government Association](https://www.local.gov.uk/parliament/briefings-and-responses/debate-future-social-housing-house-commons-19-april-2023).
Additionally, financial constraints remain a significant barrier. The lifting of the Housing Revenue Account borrowing cap in 2018 has positively impacted council house building, with some local authorities significantly scaling up their building numbers. Despite this, there is still a considerable shortfall in meeting the demand for social housing. The LGA argues that additional funding and policy reviews are necessary to deliver social homes at the required scale and quality [oai_citation:5,Debate on the future of social housing, House of Commons, 19 April 2023 | Local Government Association](https://www.local.gov.uk/parliament/briefings-and-responses/debate-future-social-housing-house-commons-19-april-2023).
Policy Reform Needs
The Right to Buy (RTB) scheme, which allows tenants to buy their council homes at a discount, has resulted in the loss of nearly two million social homes since its introduction. The LGA estimates that by 2030, 100,000 homes are likely to be sold through RTB, but only 43,000 will be replaced at the current building rates. This raises concerns about the scheme’s impact on the availability of social housing stock [oai_citation:6,Debate on the future of social housing, House of Commons, 19 April 2023 | Local Government Association](https://www.local.gov.uk/parliament/briefings-and-responses/debate-future-social-housing-house-commons-19-april-2023).
Moreover, nearly two-thirds of new social rent homes were built through section 106 developer contributions in 2019/20. However, policy changes allocating a significant portion of these contributions to the First Homes scheme are expected to result in the loss of 22,700 homes for social rent by 2026. The LGA is advocating for the removal of this requirement, allowing councils to determine the most appropriate mix of affordable homes to meet local needs [oai_citation:7,Debate on the future of social housing, House of Commons, 19 April 2023 | Local Government Association](https://www.local.gov.uk/parliament/briefings-and-responses/debate-future-social-housing-house-commons-19-april-2023).
Conclusion
The UK’s social housing situation is marked by a significant gap between supply and demand, exacerbated by policy challenges and financial constraints. Addressing this issue requires a multi-faceted approach, including increased funding, policy reforms, and a strategic focus on building homes for social rent. This will not only alleviate the housing crisis but also support economic growth and provide stability for vulnerable populations. The government’s initiatives are a step in the right direction, but more targeted actions are necessary to bridge the current gap in social housing provision.
Author:
Founder and mortgage and protection adviser in Albion Financial Advice
Dariusz Karpowicz is a seasoned adviser in the financial services industry. After gaining valuable experience working with an established broker, he founded his own practice, Albion Financial Advice. This firm is dedicated to assisting clients in acquiring properties and advising on various mortgage options. Born and raised in Gdańsk, Poland, Dariusz moved to the United Kingdom in 2006.
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