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Councils call for new homes powers
The Local Government Association (LGA) is arguing that English councils should be freed from restrictions on the ability to borrow to fund new home building.
Despite the government insisting that is is delivering on its commitment to replace all properties sold on a one-for-one basis, the LGA has called more more powers to replace every council home that is sold off, as quickly as possible. It is also keen to replace council homes that are sold off under Right to Buy arrangements.
Currently, the government only allows local authorities to keep 30 per cent of the cost for replacement council homes, meaning that councils are not able to build replacements.
In submission to the Treasury, the LGA said the scale of the housing crisis demanded that action to fix the lack of affordable housing was taken immediately.
It said: “The government's recent announcement of an additional £5 billion investment in the form of loans to private sector organisations and for building homes on surplus public land is a welcome step.
“However, councils are also well placed to bridge the gap between housing need and future building levels and are keen to see - and support - delivery at speed.”
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