Construction union UCATT have slammed proposals put forward by the Right-wing think tank Policy Exchange, which would result in "expensive" social housing being sold off and the money invested in building new homes in cheaper areas, as a further move to "ghettoization".

Steve Murphy, General Secretary of UCATT, said: "These proposals are truly frightening and will not work. They would lead to ghettoization, with social housing tenants forced to live on the cheaper outskirts of towns and cities. We should be increasing mixed developments, in order to break down social segregation, not reducing them."

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UCATT has been campaigning for the Government to reverse its cuts in new build social housing and for additional large scale investment in this area. This would help kickstart the construction industry and also begin to reduce the soaring housing waiting lists.

Mr Murphy added: "The housing crisis is only going to be solved by significant investment in social house building. Selling off existing homes is morally wrong and will not generate significant investment. The Government must stop prevaricating and instead provide new funding for social housing."

(CD)