Councils given freedom to build social homes
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The government has unveiled plans for a new generation of council-led affordable home building.
A consultation paper from the Communities and Local Government department will suggest council-led building as a possible answer to the lack of homes for social rent, and slowdown in the house building sector.
Under the plans councils would be able to keep the rent from homes they build, and the revenue if they are later sold under the right to buy.
At present much of the rent from council-owned properties is pooled nationally into the housing revenue account, and 75 per cent of right to buy money also goes into a central pot.
The CLG said it is looking at ‘removing some of the financial barrier stopping councils from building new properties and increasing their housing stock’.
Housing minister Margaret Beckett said: ‘We are determined to keep house building going in the current climate, as the long term need for more homes is not going to disappear.
‘These new freedoms will encourage councils to play a bigger role in driving forward the delivery of new affordable homes for families in housing need.’
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Readers' comments (1)
Alexander Johnston | 21/01/2009 2:16 pm
You are wrong to suggest that 75 per cent of right to buy receipts goes into a central pot eg: since April 1999 Somer Housing has sold off over 1000 homes under right to buy with 70 of that receipt going back into B&NES Council's coffers as per the transfer agreement. And what has the Council done with a large percentage of that receipt? Build new homes ? you must be joking they have used it to fund the building of the Bath Spa at a cost of £45 million. New Labour really has a lot to answer for!
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