Council house waiting lists to soar

The number of people waiting for council housing could top five million by 2010, the LGA has predicted.

The association issued the stark warning in response to news that repossessions have risen by 70% over the past year.

New figures from the Financial Services Authority show that over 11,000 homes were repossessed in the second quarter of the year, up from 6,500 last year.

The number is expected to continue to rise, with the figures also showing an increase in the number of homeowners in arrears on their mortgage.

Cllr Paul Bettison, chairman of the LGA environment board, said: “With the banks overstretching their credit facilities it could well be the case that in the coming months councils will have to help pick up the pieces as people end up on social housing waiting lists.

“Even when the economic good times were rolling, councils saw ever increased pressure on their social housing stock. An average of 90,000 households join the waiting list every year and we expect this to rise.”

 He added: “Councils want to provide decent homes quickly for those who cannot afford to rent in the private sector or buy their first home. But they have been hamstrung by the lack of freedom to borrow off council assets to invest in building or buying new homes for those who need them most. Town halls also need more flexibility to use existing housing stock.

“Social housing has to be a top priority because the harsh reality is that fewer people are getting on to the housing ladder.”