Social Housing and the Credit Crunch
Following up the suggestion of a listener last week we took a look at the situation of people on Housing Benefits. As part of that work we contacted the , asking about the effect of the credit crunch was having on Social Housing.
They told us they were working on a report but weren't able to share the findings yet. Well on Friday we were given a preview of one of the key findings of that report. The LGA told us that,
We are set to predict that the impact of a slowdown in the economy and the credit crunch could lead to two million households in England, or 5 million people will be on the waiting list for social housing by 2010.
For context in 2007 the LGA told us the figure was 1.6million households. Although we'll have to wait for the report for a close examination of the figures and the causes of this rise we were given an overview of some of the factors pushing numbers up a few of which I include below:
- "Second lowest mortgage approvals in 13 years, reducing demand for new-build where affordable housing is built. "
- "Housing associations struggle to secure loans to create new affordable housing due to the credit crunch."
- "Local authority and housing association new-build over the last decade is at its lowest since 1947."
There will be more on how the credit crunch is affecting demand and supply of social housing on PM on Monday.
UPDATE: From Monday's PM. Nils Blythe looked at the issue on PM and the figure we obtained from the LGA was put to Caroline Flint MP the housing minister, you can hear that below:
Related Link: The Credit Crunch map.
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