The National Housing Federation has welcomed a report by the Communities and Local Government Committee which calls for a major increase in the supply of rented housing for people on low incomes - but has condemned the growing trend towards 'buy-to-leave'.

The Supply of Rented Housing, published yesterday, says that 50,000 new social rented homes a year are needed, more than are currently being built, and calls for better standards in the private rented sector.

David Orr, Chief Executive of the National Housing Federation, said: "For too long, there has been a chronic shortage of social rented homes in this country. It has had a devastating impact on communities - and with repossession rates likely to rise because of the credit crunch, we are set to see even more people in need of good quality affordable housing. It is vital that we tackle this problem head on.


"The Government will be spending £8.4bn on affordable housing over the next three years. This investment is very welcome. And housing associations stand ready to play their part by delivering at least £12bn of investment to match this."

But he added that the growing trend for people to buy properties simply to leave them empty in order to earn money through capital appreciation was unacceptable.

He said: "The growth of buy-to-leave is a national scandal. On the one hand, we have almost five million people on waiting lists for social homes. On the other, we have more and more people snapping up homes simply to leave them empty and make a profit.

"The situation is now so serious that the Government must intervene - and make buy-to-leave less attractive."

(CD/JM)