One Million Properties Needed by 2021.

by Mark Johnston

One Million Properties Needed by 2021.

It seems that as the population increases the UK is facing a severe shortage of affordable homes, a problem that lies at the heart of the country’s housing crisis.

Data shows there is now a growing housing crisis as fewer homes are being built this year than for a generation. 

house crashThe number of households in England is projected to increase by nearly 4.5 million between 2006 and 2026. This translates to an increase of between 220,000 and 225,000 households each year.

Therefore recent research has revealed that almost a million affordable rental homes are needed by 2021 if England is to stave off a homelessness crisis.

The country is already almost 300,000 short of the number of homes it needs at below-market rent.

Britain is expected to face a shortfall of 934,388 properties at ‘below market rent’ within eight years, including social housing properties and private rented accommodation with housing benefit.

Analysis reveals that England will need  additional properties available at sub-market rent if severe shortfalls between demand and supply are to be met.

Therefore experts have suggested that this “severe” shortfall in rented housing is leaving the most vulnerable people out in the cold.

It appears that this severe shortage of homes has forces desperate tenants to live in illegally built cramped structures.

The shadow Housing Minister, Jack Dromey MP, added that “This is yet more evidence of the biggest housing crisis in a generation. The Government’s failure is having dramatic consequences for people all over the country.”

A current report has suggested that whilst it is vital that more affordable homes are built, there are also other ways of tackling the problem which do not come with a huge price tag.

The report states that the growing problem in housing can be solved by building more homes in the private and social sectors but it can also be helped by making better use of existing stock, for example by increasing housing benefit rates so that more private rented properties become affordable, and the increased use of social lettings agencies and rent deposit schemes.

The government has already said it is committed to building 170,000 new affordable homes for rent and home ownership by 2015, and is planning to accelerate the building rate from next year.

Housing Minister, Mark Prisk, said: “420,000 social homes were lost under the previous administration, but we are building 170,000 new affordable homes for rent and affordable home ownership by 2015”.

Therefore it seems that affordable homes are at the heart of the Governments new investment in which they intend to provide a £3.3 billion pot to build 165,000 new homes by 2018. This is equivalent to 55,000 new homes a year which is the fastest annual rate of building for two decades.

This new investment also includes a £160 million boost to the Decent Homes programme, which means that councils can improve almost 11,000 of their housing stock for their tenants.

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