Councils need long-term funding certainty

Councils need long-term funding certainty to enable them to scale up to deliver an ambitious build programme of 100,000 high-quality, climate-friendly social homes a year, as well as a long-term national commitment to support a council housebuilding renaissance and improvements to existing stock.

In the Local Government Association’s submission to the Autumn Statement, we are calling on 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.

“Councils share this collective national ambition to create great places for current and future generations while tackling housing shortages”

We are calling on the government to hand out a new local housing deal by 2025 to every council in England that wants one, which combines funding from multiple national housing programmes into a single pot.

We are also calling for continued access to preferential borrowing rates through the Public Works Loan Board, as well as further reforms to the Right to Buy scheme. These include allowing councils to retain 100% 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.

The government itself recognises the significant unmet need for social homes and an expansion of council housebuilding would provide a boost to housing supply, providing a pathway out of expensive and insecure private renting towards homeownership. This in turn would also reduce homelessness, tackle housing waiting lists and support the growth of green skills and net zero ambitions. A building programme of 100,000 new social rented homes every year would also provide a £15bn boost to the economy.

Pressure on social housing is compounded by the various asylum schemes councils are grappling with, and councils are increasingly concerned about the number of asylum seekers presenting as homeless. The decision to close 50 asylum hotels by January means that these numbers will make it challenging for those leaving accommodation to find affordable, long-term accommodation. 

“We are calling on the government to hand out a new local housing deal by 2025 to every council in England that wants one”

There needs to be a joint and funded approach nationally, regionally and locally to manage the move on from asylum accommodation and avoid risks of destitution and street homelessness throughout the winter.

Our local areas should be somewhere we are all proud to live, work and enjoy our time in, and give everyone the opportunity to reach their full potential. Councils share this collective national ambition to create great places for current and future generations while tackling housing shortages, but this will only be achieved through strong national and local leadership working together.

Housing consistently appears in the top 10 priorities for British residents and is mentioned as a key issue by 18 to 34 years old twice as frequently than older age groups. Building the right homes in the right places is central to meeting local needs while boosting affordability, if our communities are to thrive.

The chancellor’s announcement later this month (22 Nov) is an opportunity to secure local financial and service sustainability, potentially reduce costs falling on other public services and support the delivery of a key government agenda in providing more homes for those in need.

Darren Rodwell, housing spokesperson, Local Government Association; executive member for housing and planning, London Councils; and leader, Barking & Dagenham Council