New powers to borrow and invest in new and existing housing look
set to be used by the majority of councils but further reforms
are needed to spark a genuine renaissance of social housing, a
survey by the Local Government Association reveals.
Last year, the Government accepted the LGA’s call to scrap the
housing borrowing cap.
The LGA’s new survey shows the move will support the
delivery of local housing with 94 per cent of housing
stock-owning councils (59) saying they will use the new powers to
accelerate or increase their housebuilding programmes to build
homes desperately needed in their communities
The number of homes built for social rent each year has fallen
from over 40,000 in 1997 to 6,000 in 2017. The LGA said this
decline has resulted from the policies of successive governments,
such as rules and restrictions hampering the ability of councils
borrowing powers to build.
This loss of social housing has led to more and more individuals
and families finding themselves pushed into an often more
expensive and less secure private rented sector. As a result, the
housing benefit bill paid to private landlords has more than
doubled since the early 2000s.
However, 92 per cent of councils are clear that more support from
government is needed if councils are to truly resume their
historic role as major housebuilders and reverse this decline in
social housing. There are 205 councils who no longer own any
housing stock in their area so will be unable to use new
borrowing powers.
The survey also reveals that:
- Reform of Right to Buy (RtB) is needed with responding
councils calling for the power to retain 100 per cent of RtB
receipts and set discounts locally.
- 97 per cent said more national advice and guidance is needed,
while others saw homelessness as a key driver behind building
more homes, with 81 per cent of respondents saying additional
future housing supply would help address homelessness in their
area.
- The growing national and local skills gap was also a cause
for concern, with councils ability to reskill and upskill crucial
to accelerating their homebuilding plans.
The LGA said the Government needs to reform Right to Buy to
ensure councils can replace every home sold, as well as setting
out sustainable long-term funding and commitment to social
housing in the Spending Review.
LGA housing spokesperson Cllr , said:
“By lifting the cap on councils being able to borrow to invest in
new and existing housing, the Government has showed it has
heard our argument that councils must be part of the solution to
the chronic housing shortage.
“Our survey shows that councils up and down the country want to
build more good quality, affordable homes that meet the strategic
housing needs of their local communities.
“The last time the country built more than 250,000 homes in a
year, in the 1970s, councils built around 40 per cent of them. A
genuine renaissance in council housebuilding is the only way to
boost housing supply, help families struggling to meet housing
costs, provide good quality homes to rent, reduce homelessness
and tackle the housing waiting lists many councils have.
“Councils now also need to be able to keep 100 per cent of Right
to Buy receipts and set discounts locally to ensure they can
replace any homes sold.”
NOTES TO EDITORS
- The survey was sent to all councils with Housing Revenue
Accounts (165 local authorities in England). A total of 63
councils responded.
