Almost nine out of ten councils are experiencing or anticipate an increase in demand for social housing because of the recession, new research published has revealed.

A survey of council leaders conducted by the Local Government Association (LGA), which represents councils in England, shows that 57% of authorities are seeing more people in need of social housing and 31% expect to.

A 'perfect storm' of a range of different factors is placing pressure on the country's council housing. There has been a significant rise in demand for council housing because of repossessions, a sharp fall in mortgage lending and house prices that remain out of reach for many people on an average salary. At the same time the supply of affordable housing has dried up.

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Cllr Margaret Eaton, Chairman of the LGA, said: "This survey of council leaders shows the deeply worrying impact the recession is having on the housing market. Families have yet to see the government’s bail-out to banks filter down to create lower borrowing rates for potential homeowners, and it will be councils that have to pick up the pieces as people end up on social housing waiting lists.

"Councils saw increased pressure on their social housing waiting lists even when the economic good times were rolling. Now as the recession starts to bite it appears thousands more people will be looking to their council to provide them with a permanent home.

"Councils want to provide decent homes for those who cannot afford to rent in the private sector or buy their first home, but they have been hamstrung by a lack of freedom to do so. Allowing local authorities to borrow on the open market and keep the rent from their tenants and right-to-buy schemes, would unlock the resources to allow them to embark on a major new programme of council house building.

"Social housing has to be a top priority because the harsh reality is that fewer people are getting onto the property ladder."

(CD/JM)