13 June 2008
Better advice should be offered to prospective homeowners to avoid them becoming victims of the credit crunch, housing professionals warned this week.
With the demand for social housing rising due to home repossession orders, members of the Chartered Institute of Housing called on the government to fund more holistic advice services that include helping tenants make the right decision over buying a home.
About half of housing professionals surveyed by the CIH reported increases in the numbers requesting social housing. Almost 60% said the risk of homelessness was rising in their area; 68% said demand for debt advice and counselling was increasing; and 71% urged the government to regulate home ownership to ensure people did not borrow more than they could afford.
The survey of 691 CIH members, due to be unveiled at the institute's annual conference in Harrogate next week, also shows that 70% doubt whether the sector can meet government targets for building affordable housing.
CIH chief executive Sarah Webb said the credit crunch was highlighting the fragility of homeowners' personal finances. 'Good housing advice must be placed at the core of the decision-making to help avoid instability in the housing market in the future,' she added.
Last month the Local Government Association warned that housing waiting lists could soar from 1.6 million to 2 million households within two years unless the government lifts restrictions on council borrowing, and allows them to provide more homes.
PFjun2008
