National Housing Federation calls for long-term plan to fix “broken housing system”

The National Housing Federation (NHF) has warned that nearly five million households will live in unaffordable homes by 2030, without “urgent action” from the government.

The organisation has called on politicians to commit to a long-term plan to fix what it describes as a “broken housing system”, adding that this can only be achieved through a commitment to “drastically increase the number of social homes beginning in the next Parliament”.

A report by Pragmatix Advisory on behalf of the NHF found that rising mortgage rates and private rents, coupled with a “chronic” shortage of social housing, will mean a “sharp rise” in the number of homeowners and private renters struggling to meet their housing costs.

Looking at how England’s housing crisis will unfold in the coming years without “urgent action” from the government, the report uncovered that by 2030, compared to the most recent official figures from 2020/21:

• An extra 1.7 million households will be living in unaffordable homes - an increase of more than a third (35%). This includes:
• 600,000 additional households living in unaffordable private rented homes, taking the total to 2.2 million.
• 1 million additional homeowners facing unaffordable mortgage costs, taking the total to 1.9 million - more than double current levels.
• 1.5 million families will be on the waiting list for social housing, a rise of 350,000 or almost a third (32%).
• 150,000 children will be homeless and living in emergency accommodation like B&Bs and hostels by 2030 – an increase of 20,000. This is the equivalent of six children in every school in England.

Analysing the data, the NHF warned that the consequences will be most severe for those on low incomes who are already struggling to afford private rents and cannot access social housing.

“Future rent rises will force more of these families into overcrowded conditions, increase levels of poverty and debt, and put many at risk of homelessness”, it added.

Overcrowding and homelessness among children in England is already at record levels.

In April, the NHF revealed that more than 310,000 children in England are forced to share beds with other family members, due to severe overcrowding.

The organisation criticised the government’s decision to cut funding for affordable housing by 63% in 2010, which led to an 80% fall in the number of new social homes being built, “forcing many low-income families into unaffordable and insecure privately rented homes”.

The NHF said a “strategic, long-term plan” must be properly funded to meet the target of building 90,000 social rented homes each year for the next decade, and it must include funding for “regeneration of existing homes to bring them to a decent standard and make them energy efficient”.

Kate Henderson, chief executive of the National Housing Federation, said: “There is no more time to lose. For decades, the number of families who can’t access a safe, secure home has been rising. Without urgent action from government, by the end of the next parliament many more families will be left living in unsuitable and unaffordable housing, affecting their health, economic security and life chances. Many at the sharpest end of the crisis are forced to share beds or live in shared emergency accommodation such as B&Bs or hotels whilst struggling to pay for food and other essentials.

“[This] report shows that short-term, piecemeal decisions on housing have created an emergency that will continue escalating at a rapid rate. But this is a crisis that can be solved. By committing to a long-term plan for housing that is properly funded and based on ambitious, measurable outcomes, politicians of all parties could begin to turn the tide and create real change for people in need of affordable housing.”

Lottie Winson