Housing crisis: Government funding 'too focused on big cities'

Spend less on big cities and build in more affordable areas to ease housing crisis, thinktank says.

London is receiving far more funding for house building than the rest of England, despite the fact it doesn’t face the greatest housing shortage.

The Housing and Finance Institute (HFI) thinktank claims it is a “cultural myth” that the greatest need for homes is in the nation’s biggest cities.

At present 80,000 more people are on housing waiting lists in regional local councils than in the capital and metropolitan areas combined.

London has received almost 100 times more housing-zone funding – money given to councils by central Government to be spent on developing brownfield sites – than the rest of the country combined, but has only built twice as many houses.

The capital has been given £600 million which will be used to build 75,000 homes, while the rest of England has got £6.3 million to build 34,000 homes.

“The demand for new homes is as great in the regional local areas, the opportunity to turn planning permissions into new homes is greater, and they need a fairer share of funding,” says the report.

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Spread the cash around

The HFI report argues that, for too long, there has been a focus on funding house building in cities and large metropolitan areas but only 30% of all homes planned and built in 2015/16 where in these areas.

The other 70% are in smaller communities.

“Too often it has been the noisy major metropolitan cities or the massive housing associations already awash with cash who ask for even more,” says Natalie Elphicke, HFI chief executive.

“Yet the beating heart of sustainable housing delivery is in the counties, ordinary towns and districts of England.

“It’s time to harness the energy across the country in building homes and regenerating communities.

“The Government needs to put more of its housing money where the opportunity to deliver is, and that means right across the country.”

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Spend where the opportunity is

The HFI want to see more help given to local councils to help them deliver more homes to tackle the housing crisis.

“Many councils up and down the country are putting in extra effort to deliver new homes,” says the report.

“Such effort is bringing results – and so they deserve more resources. The Government should put more of its housing money where the opportunity to deliver is being identified and can be met.

“This means more funding to energetic councils right across the country who are working tirelessly to make a difference for their communities but do not have access to the comfortable cash flow of the largest cities and biggest housing associations.”