Almost nine out of 10 councils are experiencing or anticipate an increase in demand for social housing because of the recession, according to council leaders. A survey by the LGA found 57% of authorities were seeing more people in need of social housing and 31% expected to. There has been a significant rise in demand for council housing because of repossessions, a sharp fall in mortgage lending and house prices which remain out of reach for many people on an average salary. Cllr Margaret Eaton, chairman of the LGA, said: ‘Families have yet to see the Government's bail-out to banks filter down to create lower borrowing rates for potential home-owners, and it will be councils which have to pick up the pieces.'
