Nearly 250,000 of the cheapest rented homes will be lost between 2012 and 2020
Measures to support the building of new affordable rented homes is ‘desperately needed’, the Chartered Institute of Housing has said after it predicted nearly 250,000 of the cheapest rented homes could be lost between 2012 and 2020.
CIH made the projections after figures released by the government last week showed the total number of such homes available at social rent fell by more than 120,000 between 2012 and 2016.
Though 44,600 new homes were built for social rent over that period many more were lost because housing providers have converted them to higher affordable rents to raise extra income or sold them under the right to buy. And CIH is forecasting this will continue over the next four years.
Terrie Alafat CBE, chief executive of the Chartered Institute of Housing, said: “The loss of so many of these types of homes is extremely worrying at a time we need more not less.
“It is positive that the government has announced new investment in housing in recent months but many of the homes which will be funded will still be out of reach to many people.
“What we’ve seen over the last four years is a very significant decline in the number of homes at social rent; the only type of accommodation which is accessible to a significant proportion of the population.
“If the government really wants to solve our housing crisis it must recognise that building more homes at genuinely affordable rents will be crucial to help those who need housing the most.
“We are urging it to consider how, at the very least, it can prevent this decline. We should be seeing an increase in numbers, not a significant decline.”
The projections suggest that 161,669 of the social rent losses between 2012 and 2020 will come from local authorities while housing associations will have lost a further 82,485.
The continuing decline is projected on the basis that the government has dedicated the bulk of funding to affordable rents offered at higher rates or shared ownership and that a similar level of conversions to higher rents and right to buy sales will continue.
1. The loss of social rent units by housing associations is calculated from SDR returns: they fell from 2,372,789 in April 2012 to 2,340,304 in 2016.
2. Further losses projected to 2020, making reasonable assumptions on the factors involved, total 50,000 (40,000 through conversions to Affordable Rent; 14,000 preserved right to buy; 7,000 voluntary RTB; offset by 11,000 new build without grant).
3. Loss of social rent units by local authorities is calculated from Local Authority Housing Statistics, released 12 January. They fell from 1,691,356 in April 2012 to 1,601,687 in 2016.
4. Further losses projected to 2020, making reasonable assumptions on the factors involved, total 72,000 (12,000 through demolitions; 15,000 through high-value sales; 48,000 RTB; offset by 3,000 new build).