WIREDGOV

Homelessness will increase and housing waiting lists will rise as government housing policies combine to reduce the number of desperately-needed homes available to communities, councils warn in a snapshot survey published by the Local Government Association yesterday.

The LGA poll asked councils what the impact of a range of government housing policies would have on their local area by 2020.

The overwhelming majority of councils (90 per cent) responding to the survey said reforms – including extending Right to Buy, cuts to social housing rents and Pay to Stay  – will lead to a drop in the number of much needed council homes in their local area.

Many predict that the reforms will lead to a rise in homelessness (78 per cent) and demand for temporary accommodation (80 per cent) in their community while the majority (81 per cent) expect their council housing waiting lists will increase as a result.

Four in five councils (82 per cent) said investment in estate development or regeneration would decrease by 2020 and 58 per cent of councils said housing benefit spending will increase, a likely consequence of more people being forced into the private rented sector.

As the Housing and Planning Bill makes its way through the Lords, the LGA is calling for councils to retain 100 per cent of receipts from any council homes they sell, and should gain greater flexibilities to replace homes sold through the council Right to Buy scheme.

Social housing tenants unable to afford market rents will need to be protected from the unintended consequence of Pay to Stay. The LGA said the policy should be voluntary for councils who should be able to retain any additional income generated to reinvest in new and existing homes.

Cllr Peter Box, LGA Housing spokesman, said:

"Our survey shows many councils fear some aspects of the Housing and Planning Bill will all but end their ability to build new homes by cutting billions from local investment in new and existing council housing. Local authorities will also then be forced to sell existing council homes and will struggle to replace them and many are warning this will combine to drastically reduce the number of homes available in local communities.

"Local authorities are keen to get on with the job of building the new homes that people in their areas desperately need. Instead, housing reforms that reduce rents and force councils to sell their homes will make building new homes all but impossible.

"With 68,000 people already currently living in temporary accommodation, more than a million more on council waiting lists and annual homelessness spending of £330 million – there is a real fear that this lack of homes will increase homelessness and exacerbate our housing crisis.

"While private developers have a crucial role to play in solving our chronic housing shortage, it is clear that they cannot rapidly build the 230,000 needed each year alone. There is no silver bullet, but we will not resolve our housing crisis without a dramatic increase of all types of housing, including those for affordable and social rent alongside those to support home ownership.

"New homes are badly-needed and we will only see a genuine end to our housing crisis if councils are given the powers to get on with the job of building them too."

Notes to editors

An online survey was sent to housing lead officers in all 166 housing stock-owning councils in England between January 7 and January 29 to capture their views on how housing reforms could impact on the provision of housing for local communities. It was completed by 60 councils, a response rate of 36 per cent.