Concerns are growing about whether the government can ensure that affordable housing is built in the regions where it is most needed, particularly in the north of England.
The newly elected Labour government has set an ambitious target to build 1.5 million homes within the next five years to address the country’s severe housing shortage. To achieve this, the government has made several commitments, including prioritising brownfield sites, permitting development on the “grey belt,” and increasing the focus on social housing.
But concerns are growing about whether the government can ensure that affordable housing is built in the regions where it is most needed, particularly in the north of England.
The UK’s social housing stock has been in decline for decades. Since 1991, the country has lost 24,000 social housing units annually, forcing many social tenants into the private rental sector. In 2022 alone, 29,000 social housing units were either sold or demolished, while less than 7,000 were built to replace them.
Research by planning consultants Marrons indicates that if current trends continue, social housing stock in northern local authorities will decrease by an additional 30 percent by 2040, compared to southern regions. The research shows that of the 20 local authorities projected to witness the most significant loss of social housing, seven are in Greater London, while the remaining 13 are in the north of England. Leeds, for example, is expected to lose over 11,000 social homes by 2040.
In addition to the age and condition of existing social housing contributing to its decline, the Right to Buy scheme, implemented by Margaret Thatcher’s government in 1980, has significantly reduced the stock. In the North, purchasing social homes is generally more accessible due to lower house-price-to-income ratios compared to the South. As Dan Usher, economics director at Marrons, notes in Property Week: “When Right to Buy figures are added to those of stock that has been demolished, it quickly becomes clear that a huge property deficit has formed.”
The Right to Buy scheme has faced criticism from politicians. In the lead-up to the general election, Greater Manchester Mayor Andy Burnham called for the scheme to be abolished in Greater Manchester.
After years of stagnation and uncertainty, Usher notes that the housing sector is closely monitoring the government’s plans to address the social housing crisis. He points out that what was noticeably absent from a recent speech by Chancellor Rachel Reeves were promises of substantial funding and resources.
“There was an allusion to supporting planning authorities, with the promise of training 300 new planning officers. However, this is unlikely to have the desired impact, due to the resource black hole facing many councils across the UK,” said Usher.
The economics director is urging the government, local authorities, and developers to work together to ensure the new, ambitious targets are achieved, and says a regional, data-led approach is essential.
“From directing resources to struggling planning authorities to ensuring that regions receive the correct housing types, identifying and catering to regional differences is imperative to fixing the housing crisis,” he concluded.
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