COASTAL councils were found to be spending more on luxury beach huts than on social housing yesterday, as Britain suffers from a shortage of millions of homes.

Conservative-led Torbay Council left its constituents in a rage when it admitted to spending £2.35 million on beach huts in the last two years, but only £470,000 on affordable houses.

Torbay Council housing chief Mark King told local press the huts would help generate income. The Conservative councillor said he was “fully committed” to affordable housing.

“The beach hut scheme is a capital investment and that will bring in much-needed revenue,” he said.

The Devon authority was not the only council spending exorbitant amounts on the £2,500-a-year waterfront shacks.

Bournemouth Council ring-fenced an annual £2.35m for new council homes, but was ready to invest over one-and-a-half times that amount on beach huts in Poole.

Defend Council Housing spokeswoman Eileen Short said: “We love the seaside, but the one thing you can’t do with a beach hut is live in it.

“Britain has to invest in secure, long-term and really-affordable homes — there are nearly five million people on waiting lists right now.

“We can’t wait for the next election, we need to demand action from councillors and MPs. Then perhaps we can all relax and maybe go paddling.”

The clash between residents and the council broke out less than a month after the National Housing Federation revealed a Britain-wide need for over 970,000 houses.

The federation’s director of policy and external affairs Gill Payne said more homes are urgently needed.

“We haven’t built enough homes in this country for decades, and if the gap between the number of households forming and the number of new homes being built continues to grow, we are in danger of not being able to house our children.”

The government responded to the warning with the pledge to build a million new homes by 2020, but many were not convinced.

Homeless charity Shelter chief executive Campbell Robb said: “We are past the time for another grand statement of ambition. 

“To give ordinary families back the hope of a stable home, we need to see investment and a comprehensive plan that can actually get these homes built.

“Everyone is agreed that we need to build many more homes each year to meet decades of shortfall, and the Comprehensive Spending Review is the government’s last chance to prove they are serious about delivering on their promises.

“Investment in genuinely affordable homes and a robust plan to get Britain building is the only thing that can stem this crisis.”

This spring marked the sharpest decline in housing starts since early 2012 with a drop of 14 per cent in new builds.