Councils are under so much pressure to build new housing that they are failing to upgrade existing properties, a new report from the Audit Commission has warned. While 94% of councils have prioritised new or affordable housing targets in their local area agreements, less than one-third has prioritised targets relating to existing stock. Building better lives – getting the best from strategic housing, showed a more strategic approach to housing could have significant financial savings and strengthen local communities. ‘In tougher times, it is all the more important that councils think strategically and creatively about housing, and take their housing responsibilities seriously,' said chairman of the Audit Commission, Mr Michael O'Higgins. The report also warned that without proper housing strategies in places, councils could also miss out on funding from the Homes and Communities Agency. The Local Government Information Unit (LGiU) has called for the social housing system to be ‘urgently and radically overhauled'. Its report, Room to move, it recommends changes to local government finance and increased flexibility for councils to tackle overcrowding.