England’s social housing waiting lists would take 119 years to clear at current construction rates, according to research published by housing charity Shelter. The findings highlight a growing gap between demand for social housing and delivery, with implications for local authority finances and the wider property market.
More than 1.3 million households are currently on waiting lists for social homes, whilst only 12,198 were built by councils, housing associations or private developers across England last year. This equates to an average of 110 households waiting for every new social home delivered.
Construction rates decline sharply
The research found that annual construction of new social rent homes has decreased by 64% over the past 15 years, whilst homeless households in temporary accommodation increased by 155% during the same period. In 20% of council areas across England, no social homes were built in the last two years, and in 30% of areas fewer than 10 were constructed.
This represents a significant shift from 1967, when social housing accounted for 46% of all new homes built in England, with councils providing 97% of these properties. The decline in social housing construction has occurred alongside broader changes in the UK housing market, which has seen varying trends across different property sectors.
Council debt constraints
Shelter identified a £29 billion housing debt transferred to local authorities by central government in 2012 as a key constraint on councils’ ability to build new social homes. The charity stated that servicing interest on this debt is limiting construction capacity and forcing councils to sell more homes through right-to-buy schemes than they can afford to replace.
Sarah Elliott, chief executive of Shelter, said: “Unless the scarcity of new social homes is addressed, communities will continue to be ripped apart, and children will be trapped in homelessness for generations to come.”
Suzanne Muna, secretary and co-founder of the Social Housing Action Campaign, described the situation as “a systemic failure of successive governments” that is being “actively exploited by private landlords and housing associations who are converting traditional family homes into temporary accommodation to lease to councils at extortionate rents.”
The conversion of properties for temporary accommodation represents another facet of changing property usage patterns, similar to developments such as the introduction of landlord licensing schemes in some areas.
Government targets
The government has committed to building 300,000 new social and affordable homes, with 60% designated for social rent. This would amount to 180,000 homes, approximately six times the number built in the decade leading up to 2024. A spokesperson for the Ministry of Housing, Communities and Local Government said the Social Housing Bill would “tackle the decades of sell-off that has left over a million families on waiting lists” and give councils “confidence to once again build at scale.”
The government’s plans are supported by a £39 billion Social and Affordable Homes Programme. Shelter and a coalition of councils are calling for the £29 billion housing debt to be forgiven or reduced to enable increased construction.
Market implications
The shortage of social housing has implications for the private rental sector, as households unable to access social housing remain in or enter the private market. The research indicates that councils’ increased reliance on temporary accommodation, often leased from private landlords, represents a growing expense for local authorities whilst creating demand in specific segments of the property market across England.
The data suggests that without substantial increases in social housing construction or changes to council financing structures, waiting lists will continue to grow, potentially affecting housing affordability and availability across multiple market segments.
