Are you also being affected by the housing crisis? Local English councils are being put to blame for it, read on with Personal Loans Now to see who is at fault.

Personal Loans now- Housing Crisis

Learning Highlights
  • The lack of affordable homes in England.
  • The reasons that new housing is still not affordable.
  • The kind of housing that councils are building.
  • People accuse local councils who are not doing enough.
  • Government action to ease the housing crisis.
  • Conclusions

Why is There a UK Housing Crisis?

In a recent report from the Department for Communities and Local Government, they estimated the housing needs of the country to be, and compared it to the actual number of houses that were newly built. The Local Government reveals a 29% shortfall in the number of homes needed during 2016/2017 as of the 265,936 houses that the population required only 189,650 were built. It is affordable housing that is needed the most to reduce the amount of people taking out guaranteed loans no guarantor, and it was found that this kind was in greater shortage. 92% of local councils are not building enough affordable housing. This is having dire consequences for the people who need housing the most.

Personal Loans now- Housing Crisis

Why is There No Affordable Housing?

Affordable housing that the councils are building becomes separated from people’s wages and part of the runaway housing market price increases. Soon it will grow too far out of reach for most of the people to accommodate these buildings. In the parts of the country such as Manchester and the West Midlands, rental prices are 12% lower than the average in England. Most single people on low incomes could still not afford to pay the small rental prices. This fact highlights the need to build affordable housing with government subsidies and let out for below-market rental rates to avoid people having to take out quick loans online UK.

Personal Loans now- Housing Crisis

Are Affordable Houses Being Built at Present?

Of the total amount of affordable housing stock that was put up last year, only 13% of the buildings are for social rent with government subsidies. Since 2010, the government expanded the characterization of affordable housing. This is the lowest number of homes that the council are building in this much-needed category. There is the desperate need for the development of more houses to meet the demand of low-income families, in order to enable them not to require a personal loan. The government still refuses to take decisive action and their pledges for new builds always fall far short of what is genuinely required.

So what have we learned so far?

  • A new government report shows a 29% shortfall in the number of affordable homes that the council are building in England.
  • 92% Of local councils are not building enough affordable housing
  • New builds become too expensive for many when their price becomes inflated by the property market.
  • Low-income families need more affordable subsidized housing with low rents.
  • Only 13% of the houses built last year were government subsidized for rental purposes.
  • Despite the urgent need for more affordable housing the government’s pledges still, fall short.
  • The Communities Secretary has accused local councils of not doing enough.

Communities Secretary, Sajid Javid recently made it clear that he intends to take action in building more affordable housing. He also accuses local councils for not doing enough to help the situation. He promises to take action against offending boards. Martin Tett, who is the Local Government Association’s housing spokesman was quick to defend local committees. He provides reasoning why they cannot keep up with the demand for affordable housing. He said that local boards are willing to build all types of accommodation to fill everyone’s needs. However, they lack the borrowing power needed to complete this task. He asked that the Chancellor addresses this subject and provide for it in the budget.

Personal Loans now- Housing Crisis

Government Eases Lack of UK Affordable Housing?

An attempt was made to allow housing associations to borrow more money than they need to build more housing. The government have recently reclassified them as private bodies. This will give them much higher borrowing powers and get their hands on more funds that are desperately in need to build affordable houses. This is a step in the right direction by the government but it is still not enough.

What would be more appropriate would be to extend these borrowing powers to local councils so that they could start to build. There is the requirement of a whole new formation of affordable council homes. This could house people who are unable to pay the high private rents or ever dream of buying their own home. In this way they won’t require the service of long term payday loans to purchase a house. The government could work with local councils instead of blaming them. This will solve the housing crisis and enable more people to live in a much better standard of accommodation.

Personal Loans now- Housing Crisis

Conclusion – Housing Crisis

It is easy for the government bodies to point the finger at local councils when the truth is that they do not have the borrowing powers that they need to enable them to build the housing that they require. It is a sad fact that the Tory government change their minds about specific policies, including “the delivery of a constant supply of social housing for rent”.

They still plan to build more housing for England. However, not the socially affordable type where rents are around 40% of the local market rate. Theirs will be for those who can pay 80% of the domestic market rate which is still in the category of “affordable”. The ability for housing associations to borrow funding for housing is a good step but until this is extended to local councils. The solution to this problem won’t be any time soon.


Personal Loans now- Housing Crisis