THE next PM must spend billions himself to build 145,000 more new cheap homes every year as the only solution to the housing crisis, housing groups today declare.
The giant investment programme will cost the Government £12.8bn a year.
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But an unprecedented alliance of pressure groups and charities insist all other Government attempts over the last decade to build the 300,000 new homes a year that are needed have failed.
Only by raising state spending levels back to those last seen under Winston Churchill in the 1950s will enough homes be erected, they argue.
In the rare move, five different charities and organisations have joined forces to issue the call.
Lead by the National Housing Federation, they group includes charities Shelter and Crisis, the Campaign To Protect Rural England and the Chartered Institute of Housing.
NHF chief executive Kate Henderson last night dubbed the housing crisis “an economic, social and human catastrophe”, but added: “It can be solved.
“Now, for the first time, we know exactly how much it will cost.
‘HUMAN CATASTROPHE’
“By investing £12.8bn in affordable housing every year for the next decade, the Government can ensure millions of people have a stable and affordable place to live, at the same time as strengthening the economy.”
New research by Heriot Watt University commissioned by the group found the current huge backlog of people who need a home can only be cleared if 145,000 social homes a year go up for the next decade.
Private developers won’t build the cheaper homes that ordinary Brits can afford to rent or buy.
The research also found that the building boom would add £120bn to the economy each year, once the Government figure is matched by councils and housing federations through the creation of local jobs.
That means every pound spent by the Government would generate at least £5in return.
More home owning would also slash the Government’s housing benefit bill, which hit £22.3bn last year – much of it going into the pockets of private landlords.
Shelter boss Polly Neate added: “The steep decline in social housing is at the core of the housing emergency that now effects so many.
“Social homes are what this country wants and what it needs – they are the best solution to the problems we face and an opportunity to unite the country.”
