11.03.20
London Councils need ‘budget freedom’ to tackle homelessness
London boroughs are calling for more council freedom in today’s budget (Mar 11) to allow them to take control of the housing crisis in their region, by having the funds to build more affordable homes.
Representative group London Councils announced yesterday (Mar 10) that it was urging the Treasury to make radical policy changes to help homeless people across the capital.
Affordable housing in London is deeply lacking, with recent Government estimates highlighting 72,000 new homes would need to be built in London each year to meet demand.
Without the powers and resources embedded into the budget, councils across London cannot build houses at the rate of demand.
A fairer borrowing rate for housing investments and full income from Right to Buy sales would help boroughs to boost the deliver of new affordable housing. With current Right to Buy policy meaning an estimated £400m loss of income among boroughs between 2013 and 2021.
Cllr Peter John OBE, Chair of London Councils, said:
“With 57,000 households living in temporary accommodation in London, including 88,000 children, there’s no denying that the capital is facing the most severe homelessness crisis in the country.
“If Government is serious about reducing homelessness, the Chancellor will seize the opportunity in his first Budget to give boroughs full receipts from Right to Buy and the ability to borrow to invest in housing at low cost.
“Boosting long-term, strategic investment now will accelerate boroughs’ work to build the thousands of new homes that Londoners need.”
Housing borrowing rates for the Public Works Loan Board (PWLB) should be reformed according to the London Councils, following the 1% rate increase last year, adding considerable costs to large-scale projects.
It comes after a report was published by homeless charity Crisis, highlighting the pressures on homelessness services with London currently accounting for two-thirds of homelessness in England.