Section: Housing Provision

Report identifies factors that stop councils from building more houses

Posted 08.01.20
Chartered Institute of Housing: Further reading

When the borrowing caps that restricted council house-building were lifted a year ago, the government said it heralded "a new generation of council homes".

However, a new report by the Chartered Institute of Housing, National Federation of ALMOs and the Association of Retained Council Housing show councils still face obstacles to building more homes.

The report asked different-sized councils across England what was still stopping them building the homes their local communities need.

The Treasury estimates that local authorities will soon be building 10,000 houses a year. Whilst that's likely to be met - and even exceeded, councils and ALMOs say they could do more.

For three-quarters, the lifting of the borrowing caps was a significant factor but generally not the only one.

The government's planned rents policy from 2020 onwards was generally welcomed, councils expressed the need more long-term income stability and would prefer a ten-year policy, as opposed to the five years being proposed.

The report lists other significant constraints - including the requirement to allow tenants to buy their homes at a significant discount, and restrictions on how councils can use the money they raise from selling these homes.

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