Housing

Five times more affordable homes needed each year, claims charity

The government needs to build 600 low-cost rented homes every week, according to the Joseph Rowntree Foundation, or risk a shortfall of 335,000 homes by the end of parliament

Social housing

The lack of affordable housing being created, combined with an on-going cost of living crisis, is leaving more and more people priced out of the housing market.

And now new analysis by the Joseph Rowntree Foundation [JRF] – an independent charity that funds research into social policy – suggests that the delivery of affordable housing is currently 30,000 per year less than is required.

The deficit caused by the undersupply has already reached 180,000 and will lead to a see shortfall of more around 335,000 homes by the end of Parliament in 2022 if current trends continue.

Joseph Rowntree Foundation housing shortfall
JRF-housing-shortfall-drop-in
The affordable housing supply shortfall is expected to hit 335,000 by the end of parliament Credit: Joseph Rowntree Foundation

In other words, 600 more affordable homes are required each week – a rate higher than the 100 low-cost rented homes-a-week pledged by the government. With council capacity only covering around an additional 15,000 properties, housing associations will be expected to pick up the slack to manage a further additional 15,000 every year.

JRF are calling on the government to focus on the supply of low-cost rented homes in its forthcoming Social Housing Green Paper. It is hoped that this will reduce upward pressure on rent prices, quell the rising number of people living in poverty and save the government billions on the Housing Benefit bill.

Private rents are unaffordable for low earners in over half (53 per cent) of England with 171 out of 323 local authorities across the country. The analysis also claims that even the cheapest rents are unaffordable for residents in the bottom 25 per cent of local earnings with rent costing more than a third of wages.

The most unaffordable rents can be found on parliament’s doorstep in Westminster, making up 79 per cent of pay packets where nearby Chelsea and Kensington – where the Grenfell Tower disaster took place – sitting at 77 per cent.

The rates sit at 40 per cent or more for much of the south, encompassing constituents in some of the country’s most marginal parliamentary seats, as well as in areas represented by government ministers and shadow cabinet.

Campbell Robb, chief executive of JRF, said: “The Prime Minister has recognised that the housing market is broken and it’s welcome that the government wants to get the country building the homes we desperately need. But this must include homes that people on low incomes can afford. The government’s existing plans risk falling far short of the numbers of affordable homes required to ease the strain on families facing eye-watering private rents.

“Voters across all wage brackets want to see action on housing and it is simply not right that so many people in our country are locked out of the opportunity to build a decent and secure life because of crippling housing costs.

“The forthcoming social housing green paper must commit to increasing the supply of low-cost rented homes. The government can start by building 78,000 genuinely affordable homes a year. By fixing our broken housing market, we can help release people from the grip of poverty.”

An MHCLG spokesman said: “We have delivered over 257,000 affordable properties to rent since 2010 and have unveiled plans to cap tenancy deposits and ban letting fees to tenants.

“We are also investing £9bn in affordable homes to increase the number of properties which will also keep prices down for renters.”

Support the Big Issue

For over 30 years, the Big Issue has been committed to ending poverty in the UK. In 2024, our work is needed more than ever. Find out how you can support the Big Issue today.
Vendor martin Hawes

Recommended for you

View all
Leaked letter to Tory MPs reveals renting reforms will be 'watered down' to 'appease landlords'
Renters Reform Bill
RENTING

Leaked letter to Tory MPs reveals renting reforms will be 'watered down' to 'appease landlords'

Housing crisis: Shared ownership an 'unbearable reality' which has 'failed to deliver', MPs warn
Housing

Housing crisis: Shared ownership an 'unbearable reality' which has 'failed to deliver', MPs warn

Most tenants have never heard of the beleaguered Renters Reform Bill
Renters and the Renters Reform Bill
Renting

Most tenants have never heard of the beleaguered Renters Reform Bill

ONS U-turns on plan to stop publishing data on deaths of homeless people after furious outcry
homeless deaths
homelessness

ONS U-turns on plan to stop publishing data on deaths of homeless people after furious outcry

Most Popular

Read All
Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits
Renters: A mortgage lender's window advertising buy-to-let products
1.

Renters pay their landlords' buy-to-let mortgages, so they should get a share of the profits

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal
Pound coins on a piece of paper with disability living allowancve
2.

Exclusive: Disabled people are 'set up to fail' by the DWP in target-driven disability benefits system, whistleblowers reveal

Here's when UK households to start receiving last cost of living payments
next dwp cost of living payment 2023
3.

Here's when UK households to start receiving last cost of living payments

Strike dates 2023: From train drivers to NHS doctors, here are the dates to know
4.

Strike dates 2023: From train drivers to NHS doctors, here are the dates to know