As one of England’s largest council landlords, we are supporting an interim report that has today jointly published five solutions for the new government to "secure the future of England’s council housing."
In March, we were part of a cross party group of local authorities who gathered at a summit to address an increasingly urgent financial crisis.
Ahead of a full report release later this year, authored by Toby Lloyd and Rose Grayston, an interim release summarises the recommendations.
The report warns that England’s council housing system is broken and its future is in danger.
An unsustainable financial model and erratic national policy changes have squeezed budgets and sent costs soaring. New analysis from Savills shows that council housing budgets will face a £2.2bn ‘black hole’ by 2028.
Unless something is done soon, most council landlords will struggle to maintain their existing homes adequately or meet the huge new demands to improve them, let alone build new homes for social rent. Across the country development projects are being cancelled and delayed, with huge implications for the local construction sector, jobs and housing market.
Rather than increasing supply, the reality is that some councils will have no option but to sell more of their existing stock to finance investment in an ever-shrinking portfolio of council homes.
The recommendations include urgent action to restore lost income and unlock local authority capacity to work with the new government to deliver its promises for new, affordable homes throughout the country.
The five solutions set out detailed and practical recommendations to the new government. They are:
- A new fair and sustainable HRA model – including an urgent £644 million one-off rescue injection, and long-term, certain rent and debt agreements.
- Reforms to unsustainable Right to Buy policies
- Removing red tape on existing funding
- A new, long-term Green & Decent Homes Programme
- Urgent action to restart stalled building projects, avoiding the loss of construction sector capacity and a market downturn
They make up a plan for a ‘decade of renewal’, with local authorities and central government working together to get ‘Housing Revenue Accounts’ (HRAs) back on stable foundations, bring all homes up to modern and green standards, and deliver the next generation of council homes.
Councillor Paula Maines, our Cabinet Member for Resilient City, said: “Our country’s largest council landlords have come together to try to find a resolution to the issues we are all facing.
“Erratic policy choices from our last government have left council housing finances completely broken and the system’s future is in danger.
"We want to work with the new government from day one to deliver more and better council homes that our communities need.
"People are at the heart of everything we do and as a council we want our tenants and leaseholders to receive the best possible services.
“For years, we have faced major financial and regulatory changes in the housing sector that mean we need to get more from every pound we spend.
"The recent housing transfer, which has seen us bring all housing services together in the council, will enable us to be more effective and efficient in the way we deliver housing services to our residents, but we still need further support from our government to ensure we have sustainable solutions for the future.”
For more information see: