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The need for social homes in England has reached critical levels, with over one million families and individuals on waiting lists. Experts estimate that 90,000 social homes need to be constructed annually over the next decade to house everyone, but only 5,000 have been completed in the past year. According to organisations involved in the planning, building and management of social homes, the issue is caused by a “perfect storm” of financial uncertainty, unsuitable construction and significant bills for repairs. As a result, thousands of sites designated for affordable and social housing are not being built, despite a desperate need for them.
Housing providers, primarily housing associations, are struggling to buy new properties because they do not have enough money to spend. These not-for-profit organisations rely on government subsidies to buy up affordable properties and rent them out as social homes to low-income tenants. Housing associations claim they are spending more money on repairing their existing stock than previously, leaving them with less to spend on new properties. This situation is compounded by the significant expense of replacing dangerous cladding in the wake of the Grenfell disaster. Repairs caused by damp and mould are also more prevalent since the tragic death of two-year-old Awaab Ishak.
In addition to financial issues, housing associations face the problem of social homes not meeting their requirements. They argue that the social homes offered to them are unsuitable, with a surfeit of one-bedroom flats and not enough family homes. Additionally, there are concerns over gas boilers, which conflict with the move to reduce carbon emissions, as well as a perceived lack of involvement in the planning process.
The financial challenges affecting housing associations and councils are viewed as the primary reasons why sites allocated for social housing are not being built. Several councils have warned that they could go bankrupt without more social homes being built, as they are currently spending over £1 billion annually on temporary accommodation. Housebuilders have suggested that homes previously agreed to be built as affordable housing under Section 106 contracts be allowed for sale on the open market, with profits given to councils. However, this does not solve the problem of providing social homes for waiting lists
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