WIREDGOV

Four million working people will need access to some type of affordable housing even if the country achieves full employment by 2024, new research published by the Local Government Association shows.

Widespread demand for affordable homes will be much higher should the country fail to train millions to take the higher skilled and higher paid jobs that are projected to be created by 2024, the analysis reveals.

The LGA said the economic uncertainty facing housebuilders following the UK's vote to leave the European Union could make it difficult for private developers to rapidly build enough homes on their own.

At the LGA Annual Conference today, local government leaders insist a "national renaissance" in council housebuilding must be central to solving our chronic housing shortage, and for delivering the mix of different homes that meet the growing and changing needs of communities.

The last time the country was building more than the 250,000 houses that it is estimated the nation currently needs was in 1977/78 - when councils built 44 per cent of new homes, the LGA said.

Private developers in England have only been able to build an average of 90,000 a year since 2009/10. In 2013/14, this represented 77 per cent of all new houses. In comparison, councils were only able to build 1 per cent of all new homes in the same year.

The LGA set up a Housing Commission last year to explore how a renewed investment in the different new homes that people need can deliver significant wider benefits for communities.

Over the past eight months it has heard from developers, planners, charities, health partners, housing associations and many others and is publishing early findings at the second day of the LGA's Annual Conference in Bournemouth today. 

The report finds councils should be enabled to help build more homes that plug gaps in the market - particularly building the next generation of affordable homes, homes meeting the needs of those in crisis, and to support our ageing population.

Cllr Peter Box, LGA Housing spokesman, said:

"The housing crisis is affecting more and more families every year. For many, studying hard and succeeding in work will no longer guarantee an affordable and decent place to live.

"Even if the country is able to achieve full employment in 2024, around 4 million working people will need some type affordable housing as wages struggle to keep pace with house prices.

"Bold new action is needed and in the wake of the UK's decision to leave the European Union. National and local government must come together around our joint ambition to build homes and strong, inclusive communities.

"A renaissance in house building by councils must be at the heart of this bold new action. The private sector clearly plays a crucial role but it cannot build the homes we need on its own, and will likely be further restricted by uncertainties in the months and years ahead. 

"The focus of councils is beyond bricks and mortar. Investment in housing has significant wider benefits and we want to build the right homes in the right places that can generate growth and jobs, help meet the needs of our ageing population, and provide the infrastructure, schools and hospitals that enable communities to thrive.

"We must be freed to make this change happen. Today, our LGA Housing Commission aims to build on what we know works so that councils and our partners can lead the building of homes, communities and prosperity for future generations."

NOTES TO EDITORS

Analysis from the Learning and Work Institute for the LGA – available on request - projects that:

• A minimum of 3.98 million people of working age will still need access to affordable housing options by 2024 even if the country is able to achieve full employment by upskilling 3.5 million people to take higher level higher paid jobs the economy has been projected to create.
• Around 5.4 million people of working age will need access to affordable housing options by 2024 if qualification levels do not increase. Overall demand will be higher should the economy not create the jobs projected.
• The range of likely demand of affordable homes for working age people only will be from 2.25 million to 3.07 million, compared with 2.87 million in 2011. Overall demand will be much greater when taking into account those not working, such as pensioners.

The interim report of the LGA Housing Commission is also available on request. It include calls for:

• National backing for new local government housing delivery models building new and different types of homes, which could include new intermediate rent, rent-to-buy, modular housing, and co-housing options. This must coincide with a revitalisation of council house building by allowing councils to keep a greater proportion of Right to Buy receipts and to combine receipts with Homes and Community Agency funding.
• Allowing councils to set planning fees locally so they can cover costs and continue to develop a proactive planning approach for unlocking housing growth, and developing powers for councils to ensure homes are built on sites where planning permission has been granted but building may have stalled.
• Building a new market of homes attractive and suitable for older people better able to meet health needs and supporting moves which, in turn, would release more family homes into the local market. A sustainable funding model needs to be established to provide more supported housing options for vulnerable people.

CASE STUDIES

In five years Birmingham City Council has moved from providing no new homes to become the biggest builder of homes across the city. Its municipal housing trust has over 1,900 different types of homes delivered or under construction, plus seven Extra Care villages with 1,400 homes.

Wealden District Council is developing a long-term area action plan aiming to deliver 12,600 homes around South Wealden up to 2037, as part of a strategy to stimulate growth and employment.

Haringey Council's welfare reform team has approached 1,811 households with help to adapt to the benefit cap, 1,366 have ceased from being effected by the cap with 48% securing a job or increasing their earnings.

Oxfordshire County Council has led the delivery of over 800 Extra Care Housing units, including using its own land. It demonstrated that each placement can save an average of £120 a week compared to a similar placement in a care home. 

Related links

Building our homes, communities and future: Preliminary findings from the LGA Housing Commission

Housing Commission