The current state of social housing in the UK is facing a severe shortage, as highlighted by Shelter, an organization dedicated to addressing homelessness and inadequate housing. Despite the recent enactment of the Social Housing (Regulation) Act, Shelter emphasizes the urgent need for additional government action. While this legislation represents progress in safeguarding tenants’ rights, it alone cannot address the housing crisis.
Shelter underscores the necessity for increased investment in social housing to alleviate the plight of over a million households languishing on waiting lists and the staggering 100,000 households currently homeless. The organization provides a comprehensive overview of the issue, citing alarming statistics and outlining proposed solutions.
The shortage of social housing is glaring, with demand far outstripping supply. Over one million households are awaiting social homes, while the previous year witnessed the sale or demolition of 29,000 social homes, with less than 7,000 new ones constructed. This trend has led to a significant decline in social housing availability over the past four decades, with 1.4 million fewer households accommodated compared to 1980.
Consequently, many individuals and families are forced into the private rented sector, exacerbating housing affordability issues. The situation is exacerbated by a decline in social housebuilding, reaching its lowest levels in decades, and a concurrent surge in private house prices.
The escalating housing emergency underscores the need for affordable housing options. However, social housing delivery has faltered since the 1980s, resulting in a significant shortfall. While the government mandates a portion of new builds to be designated as Affordable Housing (AH), this approach falls short in addressing the dire need for social housing.
The definition of ‘affordable housing’ encompasses various forms, including social rented housing, affordable rent, subsidized homeownership, starter homes, discounted market sale housing, and shared ownership. Despite successive governments setting ambitious targets for new home construction, these goals consistently go unmet, leaving the UK facing a shortfall of approximately 1.5 million homes.
Moreover, the reliance on developer contributions to deliver affordable homes has proven insufficient, with social housing levels dwindling. The government’s strategy of entrusting social housing delivery to profit-driven developers has failed to yield adequate results, further exacerbating the housing deficit.
Because of inadequate social housing provision, the number of individuals residing in overcrowded homes and temporary accommodations has surged. Despite a temporary flattening of waiting lists for social housing since 2012, this trend is attributed to councils purging waiting lists due to the scarcity of available homes.
Shelter advocates for the construction of at least 90,000 social homes annually to address the housing crisis and ensure everyone has access to safe and secure housing. Meanwhile, entities like Global Investments offer alternative solutions by providing investors with opportunities to invest in homes rented to housing associations, catering to individuals unable to afford homeownership or market rents.
In conclusion, addressing the social housing shortage in the UK requires concerted efforts from both the government and private sector to increase investment, promote construction, and ensure affordable housing options for all citizens.
Here at Global Investments, we see the need for Social Housing that’s why we work with our developers and investors to provide investment opportunities that in turn fill a very small part of the gap required.
Contact our social housing team if your interested in investing, receiving 9% pa net returns and want to help this important sector.
