Britain has an “acute” housing shortage but affordable homes are sitting unsold because of a “senseless, wasteful system failure”, the Government has been warned.
At least 17,000 affordable housing units – built under agreements negotiated between developers and planning authorities – are unsold, the Home Builders Federation has told MPs.
Developers rely on bids from the social housing providers to buy the properties but a report from Westminster’s public accounts committee warns the system is not working.
Sir Geoffrey Clifton-Brown MP, who chairs the powerful committee, said: “This country is in the middle of an acute housing shortage, and families around the country have long been unable to access the homes they need as a result. To see any affordable home sitting empty in this context is a senseless, wasteful system failure.”
The Government has launched a “clearing service” which aims to help developers sell affordable homes by connecting buyers and sellers. However, only around 800 unsold homes are listed on it.
Sir Geoffrey said: “This state of affairs must not be allowed to continue.”
A further problem affecting the supply of affordable homes highlighted by the MPs is a shortage of planners in local authorities. It warns they are put off by the work environment, caseloads and pay, with more attractive opportunities in the private sector.
More than half of English councils are struggling to recruit planners.
Sir Geoffrey warned: “Without a functioning pipeline of highly-skilled planning professionals, councils will continue to be outmanoeuvred in any negotiation with developers in affordable homes negotiations.”
The Home Builders Federation warned this month that around 8,500 affordable homes which are due to be built in the next 12 months are at risk because housing providers are pulling back from contracts. It claims that in the last three years at least 700 housing developments have been delayed to a “lack of commitment from social housing providers”.
Meanwhile, it is reported that in London developers’ affordable housing requirement could be slashed from 35% to 20% in an emergency measure to kickstart building.
