LGA says councils should be major house builders again

The Local Government Association (LGA) has warned that millions of working people won’t be able to afford decent homes by 2024 and will require access to decent affordable housing.

The Local Government Association, which represents more than 370 councils in England and Wales, is urging Ministers to tackle this crisis and get councils to return to their “historic role” as major house builders.

According to the Association, the increasing demand for affordable homes, including social and affordable rent, and the potential Brexit economic impact make the need for council’s to be given greater powers even more pressing.

Research conducted by the Learning and Work Institute on behalf LGA predicts that a minimum of 3.98 million people of working age will still need access to affordable housing by 2024 even if the country is able to create full employment by upskilling 3.5 million people to take higher paid jobs the economy has been predicted to generate.

Around 5.4 million people of working age will need access to affordable housing by 2024 if qualification levels do not increase.

Research suggests that the likely result, however, is demand will range between 2.25 million to 3.07 million working age people. The overall demand will be greater should the economy fail to produce the number of jobs anticipated.

The LGA is therefore calling on government to enable councils to be able to borrow to invest in housing in a similar fashion they are currently allowed to do so in other projects.

Councils should be able to keep 100 per cent of the receipts from properties sold through Right to Buy to build new homes. They should also be able to combine Right to Buy receipts with other funding, to use receipts to build through housing companies, and to count the value of council land in building replacements.

The LGA is also encouraging the government to examine how different parts of the Housing and Planning Act should now be applied in light of the economic uncertainty created by Brexit.

Cllr Peter Box, LGA Housing spokesman, said: “More and more families will be affected by our housing crisis every year. As our analysis shows, millions of people studying hard and succeeding in work will also no longer be able to find an affordable and decent place to live.

“Bold new action is needed to solve our housing crisis following the vote to leave the European Union. A renaissance in house building by councils must be at the heart of this.

“The private sector clearly has an important role to play but the reality is that it cannot build the homes we need on its own, and will likely be further restricted by uncertainties in the months and years ahead.

“Councils want to get on with the job of building the new homes that people in their areas desperately need.

“If we are to stand any chance of solving our housing crisis, councils must be able to replace sold homes and reinvest in building more of the genuine affordable homes our communities desperately need now more than ever.”

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