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Housebuilders not providing enough affordable housing
Housebuilders are failing to meet demand for social and affordable housing with just 20% of homes to be build over the coming year to be affordable, new research has found.
Under Section 106 legislation, developers are expected to provide a proportion of affordable housing that should range between 35% and 50% in developments of over 10 homes. According to the survey of more than 400 UK housebuilding companies by consultancy McBains, the average proportion of affordable homes built in the last two years was just 22%.
Furthermore, builders predict on average just 16% of new homes built in the next year will be classified as social housing.
In January's official statistics, it was revealed that local authorities in the UK own 50% fewer dwellings than in 1994, at 1.6m.
Earlier this week, the cost of a home for low income citizens was shown to have risen faster in Britain than anywhere else in western Europe, the Guardian reported.
Costs for people who earn £16,000 a year have increased by 45% between 2010 and 2016 according to the Federation of National Organisations Working with the Homeless (Feantsa), who note that lack of affordable housing in England is one of the main causes of the rise of rough sleepers in the UK.
Michael Thirkettle, chief executive of McBains, said, "The chronic need for affordable homes, in London especially, is not being met with less than one in five homes classed as affordable. It means those most in need of housing will find it harder than ever to find accommodation within their budget.
"Developers are frequently accused of stifling the construction of new homes by 'landbanking' - sitting on land so that site values increase. But often the reason is that obtaining planning permission can stretch on for months, if not years, while the developer has already invested heavily in the project. Streamlining the planning system to help developments get off the ground quicker is required."
Freek Spinnewijn, the director of the pan-European Feantsa, said: "Housing exclusion and homelessness have taken on dramatic proportions in the UK.
"For almost all indicators, the UK scores badly in a European perspective and the situation has often worsened over the last few years. Especially worrying is the massive increase in rough sleepers and homeless people in temporary accommodation. The situation of young people in the housing market is also becoming hopeless."
Under Section 106 legislation, developers are expected to provide a proportion of affordable housing that should range between 35% and 50% in developments of over 10 homes. According to the survey of more than 400 UK housebuilding companies by consultancy McBains, the average proportion of affordable homes built in the last two years was just 22%.
Furthermore, builders predict on average just 16% of new homes built in the next year will be classified as social housing.
In January's official statistics, it was revealed that local authorities in the UK own 50% fewer dwellings than in 1994, at 1.6m.
Earlier this week, the cost of a home for low income citizens was shown to have risen faster in Britain than anywhere else in western Europe, the Guardian reported.
Costs for people who earn £16,000 a year have increased by 45% between 2010 and 2016 according to the Federation of National Organisations Working with the Homeless (Feantsa), who note that lack of affordable housing in England is one of the main causes of the rise of rough sleepers in the UK.
Michael Thirkettle, chief executive of McBains, said, "The chronic need for affordable homes, in London especially, is not being met with less than one in five homes classed as affordable. It means those most in need of housing will find it harder than ever to find accommodation within their budget.
"Developers are frequently accused of stifling the construction of new homes by 'landbanking' - sitting on land so that site values increase. But often the reason is that obtaining planning permission can stretch on for months, if not years, while the developer has already invested heavily in the project. Streamlining the planning system to help developments get off the ground quicker is required."
Freek Spinnewijn, the director of the pan-European Feantsa, said: "Housing exclusion and homelessness have taken on dramatic proportions in the UK.
"For almost all indicators, the UK scores badly in a European perspective and the situation has often worsened over the last few years. Especially worrying is the massive increase in rough sleepers and homeless people in temporary accommodation. The situation of young people in the housing market is also becoming hopeless."
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