Planning and Housing

06.07.16

Renaissance in council housebuilding needed to meet future demand, says LGA

Councils will need new powers to support the building of affordable homes, which up to 5.4 million people will need by 2024, the LGA has said.

Analysis from the Work and Learning Institute for the LGA shows that even if the country is able to achieve full employment by 2024 by upskilling 3.5 million people, 4 million people will still need access to affordable housing, and 5.4 million will need access if qualification levels do not increase. Between 2.25 million and 3.07 million of these people will be of working age.

The interim report of the LGA Housing Commission, released today at the LGA’s annual conference, recommends a new approach to building affordable homes, including joint delivery structures, releasing more land for building on a ‘build now, pay later’ model, and supporting SME builders.

The LGA also warned that the drive to build new homes could be threatened by the economic uncertainty following the UK’s vote to leave the European Union.

Cllr Peter Box, housing spokesperson for the LGA, said: “Bold new action is needed and in the wake of the UK's decision to leave the European Union, national and local government must come together around our joint ambition to build homes and strong, inclusive communities.

“A renaissance in house building by councils must be at the heart of this bold new action. The private sector clearly plays a crucial role but it cannot build the homes we need on its own, and will likely be further restricted by uncertainties in the months and years ahead.”

The LGA said that the planning system should focus on supporting local jobs and infrastructure and developing healthy and inclusive communities.

The LGA also called for more commitment to council housebuilding. The country needs an estimated 250,000 houses a year, but was last building at that level in 1977-78, when 44% of new homes were built by councils.

In contrast, councils are currently building just 1% of new houses. Private developers build 77% of new houses, but these only amount to an average of 90,000 a year.

The LGA said that reforms requiring the reduction of rents and forcing the sale of assets could threaten the availability of council housing.

It said councils should be granted new freedoms, including the flexibility to count the full value of their own land as part of the cost of building new homes, the right to retain a greater proportion of Right to Buy receipts to fund new homes and to combine receipts from Right to Buy sales, Higher Value Asset sales and Homes and Community Agency funding, and more investment from the government through Housing Revenue Accounts.

The controversial Housing and Planning Act, intended to increase the availability of affordable housing, passed into law in May, with LGA president Lord Kerslake saying in the House of Lords that it leaves councils paying most of the cost of social housing.

Shelter has warned that the government’s plans to extend Right to Buy could force councils to raise £26m a year by selling off council housing.

Have you got a story to tell? Would you like to become a PSE columnist? If so, click here.

 

 

 

Comments

Jenny J   11/07/2016 at 11:43

I don't think the Housing & Planning Act's most fervent supporters could or would honestly say that it was "intended to increase the availability of affordable housing"! Not, at least, without their fingers firmly crossed behind their backs.

Add your comment

 

related

public sector executive tv

more videos >

latest public sector news

LGA calls for delay to council loan repayments

05/06/2020LGA calls for delay to council loan repayments

The Local Government Association (LGA) has today (June 5) called for a delay to council loan repayments as the financial fallout of the crisis th... more >
Gov pays £1.7bn in procurement contracts for Covid response

05/06/2020Gov pays £1.7bn in procurement contracts for Covid response

A Tussell report (June 4) has revealed that nearly 400 Covid-related contracts have been awarded, worth over £1.7bn. Public sector pro... more >
Combined Authority gives green light for £13m market town giveaway

04/06/2020Combined Authority gives green light for £13m market town giveaway

The Mayor of the Cambridgeshire & Peterborough Combined Authority, James Palmer, secured unanimous approval from his Board yesterday (June 3)... more >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this... read more >

last word

Prevention: Investing for the future

Prevention: Investing for the future

Rob Whiteman, CEO at the Chartered Institute of Public Finance (CIPFA), discusses the benefits of long-term preventative investment. Rising demand, reducing resource – this has been th... more > more last word articles >
LGA calls for delay to council loan repayments

05/06/2020LGA calls for delay to council loan repayments

The Local Government Association (LGA) has today (June 5) called for a delay to council loan repayments as the financial fallout of the crisis threatens their efforts to lead their communities. ... more >
The evolution of digital transformation for local government

05/06/2020The evolution of digital transformation for local government

Content provided by TechnologyOne, editorially reviewed by Public Sector Executive. A CEO’s perspective  Andrew Grant, former CEO of Aylesbury Vale District Council... more >

the raven's daily blog

The evolution of digital transformation for local government

05/06/2020The evolution of digital transformation for local government

Content provided by TechnologyOne, editorially reviewed by Public Sector Executive. A CEO’s perspective  Andrew Grant, former CEO of Aylesbury Vale District Council, often questions whether digital transformation even exists at a local government level. I recently invited Andrew to share his unique perspective on... more >
read more blog posts from 'the raven' >

comment

Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Being on the receiving end of some “thanks” can make communit... more >
How community-led initiatives can help save the housing shortage

19/06/2019How community-led initiatives can help save the housing shortage

Tom Chance, director at the National Community Land Trust Network, argues that community-led initiatives are a productive way of helping to solve... more >
Aberdeen's green transport fleet attracting international attention

19/06/2019Aberdeen's green transport fleet attracting international attention

Aberdeen City Council’s hydrogen spokesperson, councillor Philip Bell, highlights the Granite City’s determination to play a leading ... more >
A fifth of public sector workers have never received a thank you from the people they serve

13/06/2019A fifth of public sector workers have never received a thank you from the people they serve

A fifth of the country’s public sector workers say they have NEVER received a ‘thank you’ for doing their job as Public Service... more >

interviews

Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need to invest in technology to help make better use of their resources. Bu... more >
Digital innovation in the public sector: The future is now

17/12/2018Digital innovation in the public sector: The future is now

One of the public sector’s key technology partners has recently welcomed a new member to its team. Matt Spencer, O2’s head of public ... more >
New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

05/11/2018New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

The new chief executive of one of the new unitary authorities in Dorset has outlined his approach to culture and work with employees, arguing tha... more >
Keeping the momentum of the Northern Powerhouse

15/10/2018Keeping the momentum of the Northern Powerhouse

On 6 September, the biggest decision-makers of the north joined forces to celebrate and debate how to drive innovation and improvement through th... more >

public sector focus

View all News