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Canterbury MP Julian Brazier has called for "imaginative ways" to free up some pensioners' rented homes for young families.
He was speaking following the Government's decision to make old people exempt from the bedroom tax.
He says he is unhappy that no alternative policy to the exemption has been investigated.
Now he is predicting a housing crisis for young people if new ways are not found to free up bigger, under-occupied homes.
He said: "I accept, of course, that moving older people out of their homes comes with all sorts of practical problems, but I wasn't happy there was a straight-forward exemption.
"But in the light of that, we have to look at more imaginative ways of freeing up some of these bigger homes for young families who desperately need them.
"Housing problems are one of the biggest issues in my postbag and I have heard some heartbreaking stories from desperate families.
“There are many social housing tenants living in overcrowded accommodation and on lengthy waiting lists.
“It is unacceptable for the Government to subsidise people to live in accommodation that is too big for their needs.”
"It is not a problem that is going to go away, only get worse.
"You only have to look at the primary schools to see an increasing number of larger families, many who have moved to Britain because of our open door policy.
"I am afraid this is a self-inflicted population crisis and although in Canterbury, East Kent Housing is doing the best job it can, there needs to be more sheltered accommodation for older people to move to.