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Number of new social homes being built down 90% since Tories came to power in 2010

Just 1,400 new social homes were built last year - down from almost 40,000 in 2010

Benjamin Kentish
Political Correspondent
Tuesday 19 June 2018 14:54 BST
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Budget 2017: Hammond commits £44bn to housing and commits to delivering 300,000 net additional homes per year by mid 2020's

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The number of social homes being built has fallen by almost 90 per cent since the Conservatives came to power in 2010, new official figures have revealed.

Just 1,409 of the lowest-cost homes were started in England in the 2017/18 financial year - down from 39,402 in 2009/10.

However, more social homes were built last year than the previous year after ministers responded to the Grenfell Tower disaster by promising new investment in low-cost housing.

The fall since 2010 comes after Conservative ministers decided to divert funding for social homes into more expensive types of property, namely "affordable" homes. These are rented out at up to 80 per cent of market value, whereas social rents are typically set at around 50 per cent of market rates.

At the same time as funding for new social housing has been reallocated to “affordable” housing, thousands of social homes have been converted into more expensive properties.

The Grenfell disaster forced ministers to rethink their approach, with Sajid Javid, then the communities secretary, admitting the Tories had "failed" on housing. The government has commissioned a review of the social housing sector, which is yet to report.

Labour said the latest figures showed the government was still not investing enough in social housing.

John Healey, the shadow housing secretary, said: “A year since Theresa May admitted that the Conservatives haven’t given enough attention to social housing, it’s clear ministers are still not building the homes the country needs.

“After eight years of failure on housing, the Conservatives should back Labour’s long-term plan for a million new genuinely affordable homes.”

It comes amid reports that Philip Hammond, the Chancellor, has warned his cabinet colleagues that the government’s NHS cash injection, announced this week, means there is no money left for investing in other areas – including housing.

Senior ministers were said to have been told they would not be receiving additional funding from the Treasury, despite growing calls for investment in areas such as housing.

Dominic Raab, the housing minister, said: “It’s good news to see affordable housing starts and completions rising.

“We are ambitious to do much more to build the homes Britain needs, and to make them more affordable for those on low and middle incomes.”

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