Experts warn UK housing crisis will worsen due to funding cuts

In England, a social housing crisis is looming as experts raise alarms about potential funding cuts in the spending review. Fiona Fletcher-Smith, chief executive of L&Q, highlighted that without significant investment, the capacity to build new housing will face a 'cliff edge' by 2026. The Local Government Association has reported that over half of councils are currently experiencing deficits in their housing budgets. Furthermore, data from homeless charities indicates that the demand for social housing has far surpassed current supply, with over 1.33 million households waiting for homes. The situation has been exacerbated by a decade-long loss of more than 180,000 social homes in England and rising building material costs which have surged by as much as 30%. The homeless charity Crisis has called for the construction of 90,000 new social homes annually to combat the escalating crisis. The predictions of cuts in the housing budget come amid increasing pressures on local councils, which must now allocate revenue shortfalls directly onto their housing capital programmes. These financial constraints arise in the context of broader government priorities for health and defense spending, further complicating the housing crisis as resources dry up. Experts and various stakeholders are now urging the government to prioritize funding for housing in the upcoming reviews to avoid further deterioration in social housing availability.