LGA response to LUHC Committee's report on social housing

Responding to the Levelling Up, Housing and Communities (LUHC) Committee's report, The Finances and Sustainability of the Social Housing Sector, Cllr Darren Rodwell, Housing spokesperson for the LGA said:

“There are currently not enough affordable homes to meet demand, with more than 1.2 million households on council waiting lists in England and over 100,000 households living in temporary accommodation – this is a record high.

“The LGA has set out a six-point plan to spark a council house building renaissance, which must include urgent reform to the Right to Buy.

“Long-term certainty on powers and funding could help councils deliver an ambitious build programme of 100,000 high-quality, climate-friendly social homes a year.”

ENDS

Notes to editors

The LGA is calling for the Government to go further and faster in order for councils to be able to properly resume their historic role as a major builder of affordable homes by implementing a six-point plan for social housing.

1. Roll-out five-year local housing deals to all areas of the country that want them by 2025 – combining funding from multiple national housing programmes into a single pot. This will provide the funding, flexibility, certainty and confidence to stimulate housing supply, and will remove national restrictions which stymie innovation and delivery.
2. Government support to set up a new national council housebuilding delivery taskforce, bringing together a team of experts to provide additional capacity and improvement support for housing delivery teams within councils and their partners.
3. Continued access to preferential borrowing rates through the Public Works Loans Board (PWLB), introduced in the Spring Budget, to support the delivery of social housing and local authorities borrowing for Housing Revenue Accounts.
4. Further reform to Right to Buy which includes allowing councils to retain 100 per cent of receipts on a permanent basis; flexibility to combine Right to Buy receipts with other government grants; the ability to set the size of discounts locally; and the ability to recycle a greater proportion of receipts into building replacement homes paying off housing debt.
5. Review and increase where needed the grant levels per home through the Affordable Homes Programme, as inflationary pressures have caused the cost of building new homes to rise, leaving councils needing grant funding to fund a larger proportion of a new build homes than before.
6. Certainty on future rents, to enable councils to invest. Government must commit to a minimum 10-year rent deal for council landlords to allow a longer period of annual rent increases and long-term certainty.