Over 100 of England’s council landlords call for the new government to save council homes

This week, at an event held in Westminster, an unprecedented cross-party coalition of over 100 council landlords, led by Southwark Council , jointly published five solutions for the government to ‘secure the future of England’s council housing’. They warn that England’s council housing system is broken and that urgent action is needed for the government to deliver its housing promises.?

In July, 20 of the largest council landlords published an interim summary of their recommendations. Significant traction – including an urgent meeting with the Deputy Prime Minister - has led to over 80 more councils backing their recommendations and signing the final report.

This more detailed report, led by Southwark Council with contributions from housing policy experts Toby Lloyd and Rose Grayston, sets out a full roadmap to renew our country’s council housing over the next decade and critical policy changes for the realisation of the new government’s social housing ambitions.

It explains how an unsustainable financial model and erratic national policy changes have squeezed council’s housing budgets and sent costs soaring. New analysis from Savills shows they will face a ￡2.2bn ‘black hole’ by 2028.?

They warn that unless more is done soon, most council landlords will struggle to maintain their existing homes adequately or meet the huge new demands to improve them, let alone build new homes for social rent. Across the country development projects are being cancelled and delayed, with huge implications for the local construction sector, jobs and housing market.

Rather than increasing supply, the reality is that some councils will have no option but to sell more of their existing stock to finance investment in an ever-shrinking portfolio of council homes.

The recommendations include urgent action to restore lost income and unlock local authority capacity to work with the new government to deliver its promises for new, affordable homes throughout the country.

The five solutions set out detailed and practical recommendations to the new government:

1. A new fair and sustainable HRA model – including an urgent ￡644 million one-off rescue injection, and long-term, certain rent and debt agreements.
2. Reforms to unsustainable Right to Buy policies
3. Removing red tape on existing funding
4. A new, long-term Green & Decent Homes Programme
5. Urgent action to restart stalled building projects, avoiding the loss of construction sector capacity and a market downturn

They make up a plan for a ‘decade of renewal’, with local authorities and central government working together to get ‘Housing Revenue Accounts’ (HRAs) back on stable foundations, bring all homes up to modern and green standards, and deliver the next generation of council homes.

Cllr Dr Tim Barrett, Deputy Leader of Brentwood Borough Council and Chair of Housing, Health and Community Committee, said: “With hundreds of local families on the waiting list for social housing, housing stock in need of investment, and an aspirational ambition to serve our community - this joint report is a clear outline of what is needed to make a difference. Working with?a coalition of councils – representing every corner of England - we are united in our determination to ensure our residents have decent and affordable homes.??

“Right now the financial model for Council Housing is broken, and it’s now holding back the vision we have to upgrade our council housing and build new social homes for local people.

“Our five solutions offer the new government an opportunity to change direction - lifting the council homes we have up to modern, safe, healthy and green standards, and delivering the council homes that our communities urgently need.? By investing in them together, we can transform lives for the better for generations to come.”

Councillor Kieron Williams, Leader of Southwark Council, added:?“This unprecedented coalition of councils – representing every corner of England - is united in our determination to ensure our residents have decent and affordable homes. For families across our country their council home is a foundation - giving them the security needed to put down roots and flourish.

“Our new government has committed to delivering the biggest increase to affordable and social housing in a generation. The Deputy Prime Minister’s recent announcements demonstrate that they know the critical role councils will play in reaching this ambition. However, the reality is that our national council housing finances are on the brink.

“Our five solutions offer the new government an opportunity to turn this around - lifting the council homes we have up to modern, safe, healthy and green standards, and delivering the thousands more council homes that our country urgently needs.? By investing in them together, we can transform lives for the better for generations to come.”

For more information visit www.southwark.gov.uk/housing/securing-the-future-of-england-s-council-housing