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Property News > Analysis Shows 600 Low Cost Homes for Rental Need to be Built Every Week
Analysis Shows 600 Low Cost Homes for Rental Need to be Built Every Week
In the Government’s battle against the housing crisis, they are putting funds into the plan to build affordable homes for buyers. New analysis though shows that there is also a shortfall in the number that are being built for rental. In order to fix the broken housing market, new analysis has shown that there needs to 600 low cost homes built for rental each week. With the Government due to announce that the number built will be in fact 100, that shows a shortfall in supply.Based on a new report by the Joseph Rowntree Foundation (JRF) it has been found that if the UK Government don’t increase the number of rental homes being built each week, there is likely to be a shortfall of 355,000 affordable homes by the end of the current Parliament. With this in mind, the Joseph Rowntree Foundation is calling for the Government to commit to building 78,000 affordable homes a year to meet the needs of the families who need them. With many issues that are working against meeting the targets for homes built, this may not be an easy task.What the JRF are looking for is to ease pressure on families that can’t afford to buy their own homes. With the private rental sector seen as being expensive and insecure, many areas of the country, especially London are outpricing many people who need a place to rent. With rents eating up 40% of tenant’s earnings (in London, the South East, and Home Counties) this is more than twice the national average. Obviously, this is highlighting an issue that needs to be fixed.What the analysis shows is that 78,000 low cost rental homes are needed in England to meet the demand of families in need. On average though, only 47,520 of these homes have been built each year since 2011. This has led to a shortfall of 182,880 homes in the last six year. This means that 522 new affordable homes are needed every week just to meet the downfall.While it is fair to say that the Government has made moves to improve the rental sector situation, the analysis shows that what has been done isn’t good enough. It will be interesting to see if any announcements will be made based on the analysis that has been done, and what they will do to fix the situation.With Brexit looming, a lack of skilled builders, and many other factors causing issues with the building of affordable homes, the Government has a huge task when it comes to fixing the housing crisis. We’ll have to see if the Government has it in their power to fix the housing crisis, or whether their plans were not suitable enough based on the size of the problem it actually has.