Is housing heading for a crisis?

Threat to affordable housing

Published:  15 June, 2010

LONDON: Affordable housebuilding is in danger of grinding to a halt this year the National Housing Federation warned today.

The Federation said radical changes to the planning system combined with threatened funding cuts could see the number of social homes built this year slump by 65%, to just 20 390.

That would be the lowest annual total of affordable homes built since 1990-91.

Federation chief executive David Orr said: "The brutal impact of funding cuts combined with the introduction of ill conceived changes to the planning system could lead to a 65% slump in the number of new affordable homes built this year.  

"Worse still, unless the Government takes steps to modify some of the policies recently announced we fear that the overall number of affordable homes built in subsequent years could fall to an even lower number.  

"With the scale of housing need across the country, we cannot afford for the building of affordable homes to effectively grind to a halt. The Government has repeatedly said that the public spending cuts will not disproportionately hit the most vulnerable, but if these measures go-head the impact on housebuilding will be catastrophic."

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