MPs call for 50,000 affordable homes a year

MPs have called for the construction of 50,000 affordable homes a year to reduce a backlog in social housing.

The Communities and Local Government Committee has warned in its report The Supply of Rented Housing that not enough affordable homes are being built to meet new demand or reduce a backlog.

It said the government must consider increasing its funding for affordable housing and raising construction levels to 50,000 homes a year.

It said: “An increase in the supply of social rented homes of some 50,000 a year will be necessary to reduce significantly the backlog in demand.

“Despite recent increases in spending, current rates of building are below this level; all providers of social rented homes need sufficient encouragement, resources and flexibility to increase supply.”

The report also expressed concerns that a skills shortage in the construction industry might restrict the building of affordable homes.

It called on the Homes and Communities Agency and governments to stipulate training conditions on contractors when land is sold.

The MPs also said existing stock needed to be better managed, a move welcomed by the Federation of Master Builders (FMB), which is lobbying the government to reduce the VAT on home repairs and maintenance.

The report stated the high VAT rate made it expensive for landlords to maintain or refurbish properties, which encouraged neglect that led to high rates of demolition and new build.

FMB director of external affairs Brian Berry said: “The current high rate of VAT on building repair work acts as a disincentive for private landlords to maintain their properties. 

“In many instances, this results in tenants living in misery because their landlords will not carry out basic repairs on their properties.”