One in two housing professionals is reporting an increase in the demand for social housing as a result of the credit crunch, according to a new survey from the Chartered Institute of Housing (CIH).

Members of CIH are indicating that the rise in home repossession orders is the main reason for the increase in demand. In addition, nearly 60% of CIH members are indicating that the risk of homelessness is rising in their areas. The latest trend will continue to place increasing pressure on the social housing sector, which already has an estimated 1.6 million households on the waiting list.

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A similar picture is being reflected in the demand for debt advice and counselling amongst social housing tenants and residents - 69% of survey respondents are indicating that demand is rising amongst their customers. Over 90% of CIH members who took part in the survey believe the government should now give high priority to the provision of housing advice to help people make the right housing choices for their circumstances.

Sarah Webb, CIH Chief Executive, said: "In most cases key workers such as nurses would be better off in the long-term renting for two years and saving for a deposit rather than buying with an interest-only mortgage. Sadly, I can almost guarantee that they, along with many other people trying to find their way onto the housing ladder, would not have been given this advice. The credit crunch is highlighting the fragility of the personal finances of many homeowners and good housing advice must be placed at the core of the decision-making process to help avoid instability in the housing market in the future."

(CD/JM)