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 LGA 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 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 Judith Blake, 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.”
