by Alex Bodie, Director of Corporate and Community Housing at Together
“The country faces a crisis. Despite the clear deficit of social homes available for those in need, it is estimated that the UK saw a net loss of over 12,000 social homes in England in 2023, and a quarter of renters will now spend between five and ten years waiting for social housing1. Last year, Centrepoint’s Youth Homelessness Databank found that almost 136,000 young people approached their council for help because they were homeless or at risk of homelessness2.
“In our new Residential property market report, we shared that a shocking 72% of people3 have had to travel outside their local authority to receive specialist care, and over half of young people stated that lack of stable housing is inhibiting their access to employment4.
“At Together, we strongly believe that the answer to meeting the deficit lies with the private community housing and healthcare sector. It can make a real difference to people’s lives, providing affordable homes and specialist care spaces for some of the most vulnerable in our society.
“The work developers do is more important than ever, but they can’t do it alone. They need help from the government, and from lenders who can build meaningful relationships with them and take the time to understand their needs.
“If the last year has taught us anything, it’s that more people are being pushed towards poverty, with the residential housing shortage being a contributor, as house prices and rents continue to increase in line with demand. Labour has made some much welcome promises regarding social and affordable housing, yet the jury is still out as to whether it will be able to achieve them.
“The goal of 1.85 million new homes is ambitious and would indeed alleviate some of the pressure of the housing crisis, but we also need to see a shift in public policy to help those who are underserved, vulnerable and most in need. This can be done by increasing local housing allowances to provide greater benefits, creating more care homes, incentivising developers with affordable housing allocations and working with planning to speed up the approval process.
“Additionally, developers in the sector, especially those classed as SMEs, will greatly benefit from working with lenders with a specialism in the community housing and healthcare sector, understanding the processes and stakeholders involved in these often unique projects. It’s that specialist knowledge that will allow lenders to provide the speed and flexibility required when customers want to access finance.
“Together understands the critical need for more investment into this area, and so we are keen to support experienced developers working in the sector, having set up a dedicated social housing channel nearly three years ago.
“Since then, our finance has supported the development of over 1,000 affordable homes for more than 5,000 tenants such as key workers, formerly homeless people, elderly care home residents, disadvantaged children and adults with additional needs.
“We want to send a clear message to the developers in the sector; we are here to help. We want to work with the right people, doing the right thing, for the right reasons. We’ve been providing finance for 50 years now, and will continue doing all we can to support people in achieving their property ambitions.”
Out now: Residential property market report
Steered by insights from their latest research and property industry expert commentary, Together’s new report discusses if we’re really on the road to a residential revival and what this means for driving home ownership ambitions forward.
Read the report here
References
1: https://www.lloydsbankinggroup.com/media/press-releases/2024/lloyds-banking-group-2024/chronic-shortage-of-social-housing-leaves-families-stuck-in-harm.html#:~:text=Despite%20the%20need%20for%20affordable,waiting%20for%20a%20social%20home.
2: https://centrepoint.org.uk/research-reports/failure-act-scale-youth-homelessness-uk
3: https://www.insidehousing.co.uk/sponsored/survey-the-struggle-to-meet-the-need-for-adult-care
4: https://centrepoint.org.uk/research-reports/untapped-resource