Pressure on social housing finances could impact achieving housebuilding targets
Posted 20.03.25
Local Government Association (LGA): Further reading
Council housing rents across the country will have to increase, and many councils will be forced to draw on their financial reserves, due to the ongoing financial pressures facing Housing Revenue Accounts (HRAs) according to a new survey by the LGA.
The survey revealed that 72% of all respondent councils with an HRA are 'very' or 'fairly' likely to draw down on reserves to balance budgets for 2025/26.
Additionally, 100% of councils who responded to the survey anticipate raising rents within allowable limits, with 67% also expecting to reduce real terms spending on supervision and management, and 57% on repairs and maintenance.
Only 38% of respondents were confident that they will be in a position to invest in planned new build programmes. This would have a knock-on effect on the Government's housebuilding aims, with fewer councils having the necessary funds to invest in new developments
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New investment announced to support boost in social and affordable housebuilding
Posted 20.03.25
GOV.UK: Further reading
The Chancellor, Rachel Reeves, has announced £2 billion injection of new grant funding to deliver up to 18,000 new social and affordable homes.
The funding will only support development on sites that will deliver in this Parliament. It comes as a down payment from the Treasury ahead of more long term investment in social and affordable housing planned later this year, which will provide additional funding for 2026-27 and well as for future years.
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