MPs warn of housing shortage

An increase of 50,000 new homes is needed to satisfy demand in the social rented sector, MPs have said.

The Commons communities and local government committee has recommended that ministers increase the number of new homes planned to clear the current backlog.

Its report said both council and housing association homes should be spread throughout communities, rather than in concentrated areas, to avoid creating pockets of deprivation.

The buy-to-let market was criticised in part due to the practice of so-called 'buy-to-leave', where some landlords purchasing a property then keep it empty while it appreciates in value.

The report said: "Given the shortage of housing, the implications of buy-to-leave for the supply of rented housing and the government's aims to improve affordability through new developments are potentially serious in those areas where it is happening."

Committee chairman Phyllis Starkey said on Wednesday: "A lot of people rely on the rented sector and their needs and aspirations are every bit as important as those of homeowners. We have identified a number of ways in which the experience of tenants can be improved.

"We were particularly struck that the shortage of social housing and the allocation schemes can often have the negative consequences of polarising worklessness and deprivation within an area.

In response to the MPs' report, housing minister Caroline Flint said that the government is "going further" through its £8bn-worth of investment to ensure 45,000 social houses are built per year by 2011.

Meanwhile, Liberal Democrat housing spokesman Lembit Opik said: "It's shocking that a Labour government has presided over the destruction of social housing.

"This report illustrates the real need for more social and affordable housing. With the Local Government Association predicting that the number of families on social housing waiting lists could rise to two million, the government must take action now."