England faces a Social housing crisis if government pushes in advance with a reduction in spending review, Rachel Reeves was warned.
Comes as a struggle between the vault and Angela Rayner‘S Ministry of Housing, Communities and local government over your budget continues, just a few days before Ms. Reeves is set to shape spending plans to the next election on Wednesday.
Regardless of the agreement reached housingThe Chief CEO of one of the largest housing associations in Britain raised fears of “cliff” due to the construction of more homes – which means that the money is set for 2026. years.
Warning from Fiona Fletcher-Smith, Director of Director L & Q and until last week Chair of the G15 group of associations in London, comes as Local government association (LGA) warned that 51 percent of the panel now launches deficits on their housing budgets.
Charities homeless people also warn of the upcoming crisis, with a new supply of impossible to continue increasing demand for social housing.
The crisis pointed out that in the last 10 years in England there has been a net loss more than 180,000 social homes. Currently, 1.33 million households in England are currently stuck on the waiting lists with the Council for Social Home.
Ms. Fletcher-Smith explained that the problem began to save George Osborne in 2010. year, when he reduced 63 percent of the capital budget to build new homes.
She said that he then “loaded” to compensate for the loss of filling the inflation of the CPI plus 1 percent in the rent, which housing and councils now want to renovate in restoration. This will allow them to borrow money for construction, as it passes as guaranteed income.
The cumulative effect now means that housing associations no longer have funds for project construction.
Ms. Fletcher-Smith said, “Decisions on residential housings are so long; not only Planning permitYou have to get all utilities, everything else is lined up for construction. Running is 5-7 years to build housing. We could see from our own predictions, we will just leave the edge of the cliff by 2025. Years. “
The sector also struggles with the influence of Greenfell Tragedy for Fire in 2017. years, with thousands of homes are now exposed to coating problems, which cost them 2.6 billion pounds in London.
I am in London, 4 million pounds spent on “storage of people in temporary accommodation”, because the homes with the coating are too dangerous to return and clogged courts mean to legal cases that could solve the problem.
Ms. Fletcher-Smith also mentioned that “the Brexit was a combination, Codic and the war in Ukraine” hit the sector, agreed to inflation, which saw the construction materials have as many as 30 percent – significantly above 11% of the climax.
They are now afraid that Ms. Reeves and Treasury will be on the residential budget to balance books as a chancellor to the Foundation, increase the Defense of the Proposal for Disposal and in accordance with the end of winter fuels for retirees.
The Deputy Prime Minister of Water Prosecution to Protect the budget and instead to withdraw to a range of taxes on wealth to large corporations and millionaires. But they resisted Mrs. Reeves.
However, fears of housing are shared by charitable homeless organizations, which call 90,000 new social housing houses that will be built per year.
Matt Dolye, Executive Director of the Crisis, “This review of consumption is an opportunity for a significant investment to begin to see the Level of Homelessness.” Small adjustments are not enough to fix problems. “
Mairi Macrae, Shelter Policy Director, said: “The homeless people spend huge pieces of their budgets just to keep families with the streets in the construction homes of social rents, not cut.”
The question is also disturbing point railways at work viewing the party slide in the surveys.
One worker’s deputy said a decrease in this area caused anxiety among stripes, especially those with seats in areas with councils already on the edge of the collapse.
Others pointed out that the water level of work “does not mean anything if the current part of social housing is suffering” as a result of cuts.
The Government provides financial support to local authorities for the provision of social housing, including funding for new cities, repair and improvement.
Commenting on the finding that 51 percent of the Council runs a housing deficit, “These trends are not sustainable. There is a growing risk for the financial sustainability of the Councils’ revenues” that are transferred directly to their Capital Capital Programs. “
In the autumn statements, the government announced more than 5 billion total residential investment in 2025/26 for the strengthening of the offer, including 50 million pounds of the extension on the current affordable program of the 2026. Years. Years.
In the spring statement, the government announced payment in the amount of HRK 2 billion for the Convention.
To be cheaper that the Council financed new development, the government has expanded the preferential borrowing rate available to the Council from the Board of Public Works by the end of 2025/26.