Lib Dems call on Government to spend more on social housing in economic downturn (York Liberal Democrats)

York Liberal Democrats <info@yorklibdems.org.uk>

Lib Dems call on Government to spend more on social housing in economic downturn

May 19, 2008 3:04 PM

The demand for social housing will hugely increase due to the credit crunch, high house prices, and fewer homes being built, according to Council Leaders from around the country. About 4m people are now waiting for a council or housing association home, and the Local Government Association expects this to reach 5m by 2010.

A report published last week by the Local Government Association has called on the Government to give councils more freedom in delivering social housing. The report calls for councils to be able to borrow freely, re-mortgage assets to invest in housing, and have greater flexibility to allocate housing based on local needs.

Nationally, York is one of the most successful councils at delivering social housing through partnership working, but would still benefit hugely if the Government provided more funding and greater flexibility for councils to meet housing needs.

Cllr Sue Sunderland, Executive Member for Housing, said, "The social housing waiting lists have doubled since Labour came to power, and here in York there are approximately 2, 800 live applications from people on our social housing waiting list. The national figure is expected to increase by 25% by 2010, and if the same happens locally, we will certainly be struggling."

"Something that would help us hugely is if the Government returned the £26.7m of council tenants' rent that York will have paid over 5 years by 2010. This money is greatly needed here in York where it could provide hundreds of new homes."

"The current economic situation will place a huge burden on councils as we will be left to pick up the pieces if the credit-crisis leaves people in debt, and without homes. The number of repossessed homes in York has increased by 22% in the last year, and we will undoubtedly have further pressures in the future, and can only hope that the Government responds to that."