New generation of council housing announced

The government has announced borrowing restrictions will be removed enabling councils to play a key role in delivering the homes their communities need.

By lifting the Housing Revenue Account borrowing cap, councils should be able to deliver an estimated 10,000 additional homes a year, dubbed by the Ministry of Housing, Communities & Local Government as ‘the next generation of council housing’.

Councils in areas of high affordability pressure have already been invited to bid for a share of £1 billion extra borrowing to build much needed homes. Removing the borrowing cap entirely is also likely to diversify the house building market, with councils being better able to take on projects and sites that private developers would consider too small.

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