Secretary of State for Housing, Communities and Local Government, James Brokenshire, today announced plans to lift the Housing Revenue Account (HRA) borrowing cap by £1bn to permit a new generation of council housing.
In response, Localis interim chief executive, Jonathan Werran, said: “The securing from the Treasury of this measure of extra financial flexibility - to areas of the country with the highest housing costs and affordability pressures - is a significant win for local government as it seeks to champion a beefed-up role for the sector in helping fix the national housing crisis.
“The reality of the situation remains challenging. Last year just 1,490 homes were started by local authorities – suggesting the majority of local government is not set up for the large-scale construction of housing anymore.
“In context, an extra 12,500 more council homes built per year would mean the sector uprating its output very considerably.
“This announcement is a positive step forwards to engendering the kind of mixed economy which worked well enough in the years following Harold Macmillan’s successful tenure as housing secretary, when state and private builders didn’t crowd each other out as much as mutually reinforce each other’s ambitions.
“If government wants a new generation of new council homes it must continue down the track of empowering, resourcing and directing local authorities accordingly.”
Jonathan Werran, Head of News and Events, Localis
0870 448 1530 / 07967 100328 / email@example.com
Notes to editors
On 16 October 2017 Localis issued its report ‘Disrupting the Housing Market: a policy programme to save the home-owning democracy’: http://www.localis.org.uk/research/disrupting-housing-market/
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Press release distributed by Pressat on behalf of Localis, on Tuesday 26 June, 2018. For more information subscribe and follow https://pressat.co.uk/