Almost a quarter (24%) of housing associations in England have confirmed that local social housing registers can sometimes see low-income households ruled out, research has found.

According to the new report from homelessness charity Crisis, titled ‘Moving the deckchairs? Social housing allocations in England’, the associations reported that exclusions are ‘often applied in the context of local authority housing list restrictions’.

A further 24% of housing associations revealed frequently rejecting nominations from councils because of their unsuitability according to legal framework, compared to the 6% of housing associations that reported doing the same in Scotland.

Due to concerns that applicants with lower incomes or unstable finances will be unable to sustain tenancies, 'housing associations are forced to exclude applicants', the report warned.

The report also found that 63% of those operating choice-based letting systems cited issues relating to support availability amid a rising number of applicants with more substantial needs, while 71% of housing associations said welfare reforms such as the benefit cap had affected allocations.

Emphasising the ‘ever depleting supply’ of social housing and the growing demand, the report reveals that housing associations have ‘likened managing and prioritising access to social housing to rearranging the deckchairs on the Titanic’.

As part of its recommendations, the charity has urged the Government to introduce a system mirroring Scottish legislation to help meet needs of homeless households, as well as ensuring housing benefit and Universal Credit subsidise the cost of tenants’ rent.

The report also suggests increasing social housing stock, enhancing communication between councils and housing associations, and supporting low-income households and those experiencing homelessness by eliminating barriers to social housing.

Matt Downie, chief executive of Crisis, said: ‘The fundamental aim of social housing is to provide a safe and stable home for people on the lowest incomes. If people cannot afford social housing, where do they go?

‘The reckless depletion of our social housing stock, alongside cuts to state support, has put English housing associations into an impossible position where they are forced to refuse access to people in precarious, vulnerable situations. Homelessness is surpassing record levels. Its costs to people, communities and local authorities are untenable.

‘As a society we should be alarmed that we have got to this position. Ministers have to look at how we can better manage existing stock, and help councils get more stock into the system as soon as possible. This situation has to change, now.’