More public finance needed for social housing

Government investment in affordable housing is paying for less than half the homes needed to lift thousands of people out of bad housing conditions, a new report for homeless charity Shelter has revealed. Unless further investment is forthcoming from the Government, Britain faces an "unprecedented housing crisis" with 700,000 households in bad housing or technically homeless in England.

The report also predicted that a further 85,000 households risk suffering the same fate each year. To meet demand, building on green belt, particularly in the south-east of the country will have to be considered.

The report, Building for the future - the homes we need and how to pay for them, written by housing experts at Cambridge University, calculated that an extra £6.9bn is required annually to provide lower cost homes. Although much of the cash would come from the private sector, the report states that even taking into account generating extra revenue from stock transfer, levering affordable homes out of private developments and private subsidy - there is still a shortfall of £1.4bn a year which can only be met through public subsidy.

Shelter director Chris Holmes commented: "A spiralling housing crisis can only be averted if the Government resolves to invest in new affordable homes."