Commission warns 500,000 affordable homes could be lost

The affordable housing gap in the UK could widen by 500,000 properties over the next five years, according to a new report.

The report by the Affordable Housing Commission warns that without urgent action to increase the number of homes available, there could be half a million fewer affordable homes by 2025.

The Commission proposes a 12-point social housing-led recovery plan, which includes a new ‘Housing Conversion Fund’ for social landlords to buy unsold homes and other properties.

It also calls on the government to give councils control over permitted development rights.

The report also recommends ministers replace the unaffordable ‘affordable rent’ model with more social renting and make discounted ‘first homes’ additional to, not replacements for, planning gain obligations for affordable renting – thereby preventing a reduction in the most urgently needed homes.

And it suggests giving councils full discretion over Right to Buy discount levels and the opportunity to recycle 100% of sales proceeds into new social rented homes.

‘A recovery plan, with a focus on social rented and affordable housing, will encourage jobs and growth and rebalance the housing system so it is fit for purpose post COVID-19,’ said commission chair, Lord Richard Best.

‘As people face reduced incomes and potential unemployment the need for truly affordable social rented homes becomes even greater.

‘With a weaker housing market and millions of renters under housing stress this is the moment for the social housing sector to step in, maintain the impetus for the construction industry and pick up the opportunities for growth. With decisive action from government now, there could be a big step forward in easing the affordable housing crisis.’

The full report – Making Housing Affordable after COVID-19 – is available to read here.

Photo Credit – Master Senaiper (Pixabay)