England is facing Social housing crisis If Government The expenditure reviews move forward with cuts, Rahel reeves warn up.
It comes in the form of conflict between Treasury and Angela Rener‘S Housing Ministry, Community and local government Above her Budget Continue, a few days ago MS RiVs expenses are ready to underline schemes Until the next election on Wednesday.
No compromise has been reached AccommodationThe chief executive of one of the Britain’s largest housing associations has raised the alarm of a “cliff edge” on the construction of more houses – meaning that the money is determined to run out by 2026.
Fiona Fletcher-Smith’s warning comes as the Chief Executive Officer of L&T and President of the G15 Group of London Housing Association by last week Local government union (LGA) has warned that 51 percent of the councils are now running losses on their housing budget.
Homeless donations are also warning of a adjacent crisis with a new supply unable to live with the increasing demand for social housing.
The crisis has stated that more than 180,000 social homes have suffered net damage in England in the last 10 years. Currently, 1.33 million houses in England are currently trapped in the council’s waiting list for a social home.
Ms. Fletcher-Smith said that the problem started in 2010 with the austerity budget of George Osborne when she reduced 63 percent of the capital budget to build new houses.
He said that he “welch” on a deal to allow CPI inflation and to allow for damage by charging 1 percent in rent. Which Housing Association and Council now want to restore for a decade. This will allow them to borrow money to manufacture as it comes as a guaranteed income.
Now cumulative impact means that housing associations no longer have funds for the construction of projects.
Ms. Fletcher-Smith said: “Housing decisions are so long, it is not just planning permissionYou have got to get all the utilities, ready to make everything else. It is five to seven years to run to build housing. We could see our own predictions, we were going away from Cliff Edge only by 2025/2026. ,
The region is still struggling with the influence of the Granfel Fire tragedy in 2017, with thousands of houses now subject to problems with cladding that is giving them a cost of £ 2.6BN in London alone.
In London alone, £ 4 million per month is being spent on “keeping people in temporary housing” because the cladding houses are very dangerous to return and the courts means that it takes years in legal matters to fix the problem.
Ms. Fletcher -Smith also said that “combination of war in Brexit, Kovid -19 and Ukraine” did not hit the region with minimal inflation, which saw that the construction material goes up 30 percent well from the 11 percent of the headline rate.
It is now feared that Ms. Reeves and Treasury Housing will force the budget cuts to balance the books as the Chancellor has tried to ringfare to increase health expenses, up to 2.5 percent of the GDP’s increase in defense and cuts cuts as well as cuts on the profit cuts to eliminate winter fuel payments for millions of pension.
The Deputy Prime Minister is leading an allegation to protect the budget and instead pushes big corporations and millionaires for a series of money taxes. But this has been opposed by Ms. Reeves.
However, the apprehensions at the housing are shared by homeless donations that are calling to build 90,000 new social housing houses per year.
Matt Downey, Chief Executive Officer of Crisis said: “This expenditure review is an opportunity for important investment that begins to see the level of homeless.” Small twicex are not enough to fix the problems faced by us. ,
Mary McRare, director of the policy and campaign in the shelter, said: “With a record high on high and councils are spending to keep the vast part of their budget away from the streets, now it’s time that it is time to invest in the construction of social rented houses, not back.”
This issue is also harassing labor backbenchers after seeing the party’s slide in elections.
A Labor MP said that the cut in the region would disturb the backbenchers, especially with seats in areas that are already on the verge of collapse.
Another said that the major housing pledge of the labor stated that the current stock of social housing is the result as a result of the deduction.
The government provides financial assistance to local authorities for social housing provision, including funds for new buildings, repair and improvement.
Commenting on the fact that 51 percent of the councils running losses with housing warned: “These trends are not sustainable. Some councils have an increasing risk for the financial stability of HRA, and the revenue pressure in the HRAs of the councils is now passing directly into their HRA capital programs.”
In autumn statement, the government announced a total housing investment of £ 5 billion in 2025/26, promoting the supply, which includes the £ 500M extension for the current affordable homes program that runs in 2026.
In the spring statement, the government announced a down payment of £ 2BN for the successor program.
In order to make it cheaper for the councils to finance new development, the government has increased the preference borrowing rate available for the council house building from the Public Works Loan Board by the end of 2025/26.
