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Councils must grasp new opportunities to build social rent homes

We have the potential for a council housing renaissance. Let’s not let it pass us by, writes Margaret Mullane, MP for Dagenham and Rainham

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LinkedIn IHWe have the potential for a council housing renaissance. Let’s not let it pass us by, writes Margaret Mullane, MP for Dagenham and Rainham #UKhousing

Significant government announcements arising from the Spending Review have opened the door to a major programme of new-build homes at social rent levels.

The most recent development, that 60% of the investment programme, equating to 180,000 new homes, will be devoted to social rented housing, is impressive and a game changer for housing in England.

Given the scale of need, I want to see councils acting quickly on plans for housing development programmes and submitting bids for funding from the £39bn housing investment, under the renamed 10-year Social and Affordable Housing Programme.


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Allied to this, councils should also explore the potential to access housing investment from the new National Housing Bank. The low-interest loans the bank has been set up to provide will be key, adding to grant opportunities to finance a new age for council social-rent housing.

These initiatives pave the way for a council housing renaissance, but I do fear that many councils have lost the experience and capacity to deliver, after decades of relative stagnation in housebuilding. This could see councils being slow to access the money.

“I do fear that many councils have lost the experience and capacity to deliver, after decades of relative stagnation in housebuilding”

Most housing associations will be far better equipped to submit bids, though, I suspect, in many cases their bids will include large elements of shared ownership and higher-cost affordable rented homes in their schemes. Councils must now seize new opportunities with both hands, offering real hope to the thousands of people stranded on housing waiting lists, many in desperate need.

The problem for many councils is that they have become unused to building homes themselves, mainly because grant subsidies were not available to them, while housing associations were able to access grant funding.

Some councils have managed to build homes in one tenure form or another, but felt forced to give up building homes for social rent because of problems in making it work financially.

After many years of directionless government policy to turn this around, some of the hesitation might simply be a lack of confidence and local capacity in being able to deliver, but it would be tragic if the new grant and National Housing Bank opportunities were not taken up with expediency. Where councils lack the expertise and ability to bring housing schemes forward, the Greater London Authority (GLA) and combined authorities in English regions should step in to provide the support.

To not deliver, would be to let down those in temporary accommodation and the more hidden, but just as desperate, multitudes living in often severely overcrowded situations.

It is vital that we make a real difference in people’s lives over the course of this parliamentary term. While I obviously want Labour to be re-elected in local and national elections, I fear that a delay in improving lives quickly and a continuation of the atrophy, in terms of building truly affordable homes at traditional council rents, could have significant electoral consequences.

“Where councils lack the expertise and ability to bring forward housing schemes, the Greater London Authority and combined authorities in English regions should step in to provide the support”

Because of the need to make a noticeable difference in this parliament, I would also urge the government to look for any further opportunities to increase funding for new social rented homes. An increase in the capital spending would start to bring down the revenue expenditure on housing benefit, which would bring real savings to the national welfare budget and make people happier.

In developing housing strategies, there must be a clear focus on building the homes that people in local communities want and need. With an ageing population, this must reflect the growing necessity for accommodation designed for older people.

For many, flats suit their needs, but I see so many families that really need a home with a garden so they can give their children more space and freedom to enjoy life in a safe environment. Housing is integral to fostering a better quality of life and improved life chances. Research shows that children growing up with the appropriate accommodation are healthier and more well-adjusted to deal with the pressures of life.

So my call to local authorities is clear: look at your housing needs and come forward with bids to Homes England, or the GLA, for grant funding to start a building programme for new social rented homes. Where capacity in the local authority is missing, work with the combined authority or GLA.

Margaret Mullane, MP for Dagenham and Rainham

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