26 January 2010
Cuts in public spending could halve the number of affordable homes built over the next ten years, it was claimed this week.
According to the National Housing Federation’s analysis of last month’s Pre-Budget Report, the general squeeze on spending means housing budgets will be cut by 18% – leading to a 556,000 drop in the number of affordable homes built.
Three
years ago, the government pledged to build 3 million new homes by 2020,
including 1 million for social renting or low-cost ownership. By 2011, 162,000
affordable homes will have been built, says the NHF. But this rate cannot be
sustained, according to the analysis, carried out for the federation by the
Institute for Fiscal Studies. The squeeze on housing could mean that just
282,000 more homes are built in the rest of the decade.
A
reduction in house building of this magnitude means that it would take until
2038 to build the 1 million affordable homes projected in 2007 and would add
1.25 million people to housing waiting lists, says the NHF study, published on
January 25.
David Orr, NHF chief executive, said: ‘Reducing the number of new homes by such a degree would kill off the dreams of more than a million people in desperate need of decent, affordable housing.’
‘Axing the new homes budget would also increase unemployment and obliterate the national programme for creating apprenticeships.’
Housing minister John Healey claimed the federation was in danger of ignoring the bigger political picture. ‘Of course, the public finances are tight but this government continues to demonstrate our long-term commitment to affordable housing,’ he said.
The National House Building Council, meanwhile, claimed this week that optimism is returning to the industry, with private builders applying to build 18,393 new homes in the last three months of 2009, compared with 8,646 in the final quarter of 2008.
Applications by housing associations rose by 7% to 7,685. But just 116,331 homes were completed by all builders in 2009, compared with 148,886 the previous year.
