Hundreds of new council homes are set to be built in Walsall due to the housing crisis, it emerged today. The demand for rented property is soaring.

Walsall Housing Group revealed today it aims to build up to 1,000 properties to let on behalf of the council over the next five years to deal with escalating waiting lists.

The organisation has pledged to review its long-term plans and could be in line to receive a massive cash injection to boost the number of socially-rented properties in the borough.

Funding has been secured to begin creating 200 homes, 66 of which will be in Goscote.

Walsall MP David Winnick said he has been holding in-depth discussions with WHG and would be asking ministers for the necessary cash to plug the gap.

“A great many people are coming to me about their difficulty in finding socially-rented dwellings,” he said.

“Given the credit crunch and the slump in the housing market it has prompted, it is clear we need to shift our emphasis away from the huge numbers of private-ownership houses we are building.

“I would say we need thousands more in the borough as opposed to hundreds.”

WHG chief executive Liz Walford said the group was working hard to increase the number of affordable homes, including rented social housing.

“The number and types of new properties we can build does rely upon our bids for grant from the government’s social housing regulator,” she said. “We have, in fact, already secured £5 million in new funding for 200 new homes this year and are hopeful for more funding in the future.

“We are currently bringing more of our sites forward ready for development.”