News
Demand for social housing to double
More developers could consider turning their attention to servicing this growing market as demand is outstripping supply by a considerable margin.
With around 2.5million people currently on the waiting list for social housing, the industry is already struggling to supply this sector of the market, and with numbers set to double over the next three years, it is clearly an area of opportunity for developers that are depressed by the disappearance of their traditional buying markets.
However, with local councils currently unable to borrow to invest in housing stock and developers uneasy about moving into market sectors that don’t necessarily see the same margins, there is little sign that the supply choke is likely to be eased any time soon.
Paul Bettison, chairman of the Local Government Association said: “Councils want to provide decent homes quickly for those who cannot afford to rent or buy in the private sector, but they have been hamstrung by the lack of freedom to borrow.
“This may mean fewer new social homes at a time when there will be more demand for them,” Mr Bettison went on to say.
There are also calls for councils to be granted new rights to borrow money to build new homes, to allow them to operate in the same way that Housing Associations can do.
Post a Comment on this News Article.
