MPs call for 50,000-a-year boost to social housing stock to cut waiting lists » Central Government » 24dash.com

Home building in the social rented sector must be increased by 50,000 a year above current levels to deal with a waiting list backlog, an MPs' committee warned today.

Despite recent increases in spending, rates of building are unlikely to reach this level, and the Government must be prepared to raise its investment further, said the House of Commons Communities and Local Government Committee.

In a report published today, the committee also called for action to ensure that council and housing association homes are spread throughout communities, rather than concentrated in estates which become areas of deprivation.

And it said that councils should be granted greater freedom to build on land which they own and to use money raised from the right-to-buy scheme to construct new homes. Restrictions on right-to-buy should be allowed in neighbourhoods where it is causing problems.

The committee also raised concern about the growth of the "buy-to-let" market, which made it harder for first-time buyers to purchase homes in areas like London, where around two-thirds of new-build properties in 2005 were bought by investors.

The MPs said they were "particularly concerned" by the so-called buy-to-leave phenomenon, which has seen wealthy investors snap up houses and flats, then leave them empty to earn money through capital appreciation.

While recognising that the credit crunch may put an end to the trend, the committee said that action should be taken through the tax system to discourage buy-to-leave landlords, whose activities have left as many as 30% of new apartments lying vacant in central Leeds.

"Given the shortage of housing, the implications of buy-to-leave for the supply of rented housing and the Government's aims to improve affordability through new developments are potentially serious in those areas where it is happening," the committee warned.

The committee's chair, Labour MP Phyllis Starkey, said: "Compared to ownership, renting is often seen as second best; but this perception is unhelpful.

"A lot of people rely on the rented sector and their needs and aspirations are every bit as important as those of homeowners.

"We were particularly struck that the shortage of social housing and the allocation schemes can often have the negative consequences of polarising worklessness and deprivation within an area.

"New social rented housing must be built to encourage mixed communities. We also want to see much more flexibility in the allocation schemes so that tenants making a genuine attempt to seek work can move more easily."

Responding to the report, housing minister Caroline Flint said: "Last year was the first time since 1983 that we built more social houses than we lost through right-to-buy, and we are going further with a major package of reforms backed up with £8 billion of investment to increase the number of social homes to 45,000 a year by 2011, with a goal of 50,000 a year in the next spending review.

"At the same time, we want to do more to improve the quality of the rental sector and crack down on unscrupulous landlords, which is why we have an independent review under way looking at providing good quality homes in mixed communities, and security for low income families.

"We have also put in place new powers for local authorities to bring more empty homes back into use, through the use of empty management dwelling orders as a last resort where other voluntary measures have been unsuccessful."

Geoffrey Theobald, chairman of Lacors (the Local Authorities Co-ordinators of Regulatory Services), said: "Buy-to-let may have helped increase supply of rented housing in some areas, but let's not forget other city centre areas have been decimated by an invasion of buy-to-leave investors searching for a quick profit.

"Buy-to-leave investors who are hoping to ride out the current uncertainty in the housing market in the hope of a long-term profit, should be aware that councils can, and will, use the powers available to them to bring empty properties back into use. This will not only help rejuvenate city centres but also relieve some of the pressure on social housing waiting lists.

"The credit crunch is expected to bring a swift end to the phenomenon of buy-to-leave investors. With city centre new-build flats expected to see the largest decline in house prices, any sensible buy-to-leave investor will either sell up and cut their losses, or bring the property back into use."

Liberal Democrat housing spokesman Lembit Opik said: "It's shocking that a Labour Government has presided over the destruction of social housing.

"This report illustrates the real need for more social and affordable housing. With the Local Government Association predicting that the number of families on social housing waiting lists could rise to two million, the Government must take action now.

"Councils should be set free to build council housing and take action to bring more than half a million empty homes back into use."

Shelter’s chief executive Adam Sampson, said: “Shelter has long campaigned for the need to build more social homes, particularly family sized homes, and improve standards in the private rented sector, so it is encouraging this report highlights these issues as areas for urgent action.

“Shelter particularly supports the recommendation to increase the supply of social housing to 50,000 homes a year, but it is vital these are within in mixed, sustainable communities across the country.

“The Government must concentrate on how it will work with local authorities and housing associations to deliver these new social homes and develop effective regulation to make the private rented sector an affordable, good quality alternative.”