Social housing investment falls after three decade high

The last two years saw investment in social housing at its highest sustained level in real terms for three decades, with dramatic improvements in the condition of social rented housing across Britain, although this could now be at risk when spending cuts take effect in April 2011.

The new UK Housing Review from the Chartered Institute of Housing (CIH), sponsored by Savills, shows that overall gross investment in social housing rose again in 2009/10 so that it is now up by over 80 per cent since the late 1990s, but prospects are now bleak as the sector is facing a collapse in investment as part of the deficit reduction measures.

CIH director of Policy and Practice Richard Capie said: "The last two years have seen record investment in social housing across Britain, both from central government and importantly through private finance. This allowed the provision of more homes, essential community regeneration and important improvements in existing homes. We have now entered a very different era, with 50 per cent cuts in cash terms to housing budgets in England and around 19 per cent in Scotland.

"We are in the midst of a housing crisis with fewer than half the homes we need being built. This latest research shows the sheer scale of the dramatic cuts we are now seeing in new housing. These are a body blow to first time buyers, low income households and the construction sector."