New homes in England and Wales not being built as housing associations face financing issues, research shows. The delivery of thousands of affordable homes by private housebuilders is being held up because social housing providers are unable to buy them, research has shown.
A study found 17,400 affordable homes in England and Wales with planning permission could not be built because housing associations did not have the financial capacity to bid for them. The Home Builders Federation (HBF), which carried out the survey of 32 housebuilders, warned the situation was pushing Labour’s plan to build 1.5m homes by the end of the parliament “further from reach”, and would mean those most in need of housing would remain homeless.
Affordable housing providers can buy stock from private builders under section 106 agreements in planning rules, and accounted for 44% of the 62,0000 affordable homes completed last year. However, in the past 12 months private housebuilders have found it increasingly difficult to off-load these homes, as housing associations have faced increased financial pressures.
Housing associations have instead prioritised investing in making existing homes safer, better quality and more energy efficient rather than buying and developing new ones. Private builders are required to include a proportion of affordable homes in new developments.
