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County councils are part of the solution to the housing crisis

They have not traditionally been house builders, but a new report shows county councils are increasingly getting involved in delivering new homes. Kate Henderson explains more

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County councils are increasingly contributing to housing delivery, writes @KateTCPA #ukhousing

A new report shows county councils are innovating to tackle the housing crisis, writes @KateTCPA #ukhousing

Nine in 10 county councils now say their need for affordable housing is either ‘severe’ or ‘moderate’.

The survey results, revealing the pressure councils are under to meet the affordability challenge, are featured in a new report published today by the Town and Country Planning Association for the County Councils Network.

The report not only highlights the concerns county leaders have about the amount of affordable homes available in their areas, but also showcases the entrepreneurial work counties are doing to deliver new housing development – with almost two-thirds setting up housing companies or joint development ventures, despite not being planning or housing authorities.

“County councils are getting into the business of delivering new homes through a range of innovative models.”

In many areas in England county councils are responsible for infrastructure such as new roads, schools and public amenities, while smaller district councils are responsible for planning and housing.

The study reveals that, while housebuilding is not a traditional county council activity, they are getting into the business of delivering new homes through a range of innovative models.


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So why are county councils looking at new models of delivering housing? Three-quarters of counties identified generating revenue as a key motivation.

Councils clearly recognise that building new homes not only meets local housing pressures, but provides a much-needed new source of income to at a time when they face severe funding pressures.

Almost two-thirds of counties said utilising public sector land was a driver for innovation. County councils understand that realising the value from land is about more than just maximising sales receipts; it’s about understanding the potential for long-term income streams, having a stake in the quality of development and securing wider social and economic benefits.


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TCPA and CCN reportPDF, 3.0 MB

Counties are exploring or delivering a range of housing tenures, with 45% currently delivering extra-care facilities.

The provision of specialist accommodation for older people and people with disabilities generates savings against councils’ social care budgets, as well as meeting the needs of individuals and promoting independent living and better health outcomes.

County councils also recognise that partnerships and joint ventures can be an effective way of sharing skills and capacity, borrowing power, and risk and reward.

The Surrey County Council joint venture partnership with Places for People has plans to develop more than 2,000 homes in its first phase, across 32 council-owned sites, delivering development worth more than £1.5bn over the next 15 years.

“More than two-thirds of counties said that a lack of skills within the council was a barrier to innovation.”

Similarly, Hertfordshire County Council is aiming to combine the best of the private and public sectors, harnessing the property expertise of Morgan Sindall Investments via a joint venture, the first phase of which concentrates on 500 new homes in 12 locations across the county.

So what is stopping county councils playing an even greater role in addressing the housing challenges in their local areas?

More than two-thirds of counties said that a lack of skills within the council was a barrier to innovation, and half identified infrastructure delivery as a constraint.

Essex County Council is overcoming the skills gap by establishing a dedicated housing growth unit which provides a high-level context for engagement with national government, and the expertise of the team is a valuable resource for the local planning authorities in the county.

However, Essex is the exception rather than the norm.

Key to the report is a series of recommendations to the government to further unlock the potential of counties as powerful enablers and delivers of housing, including:

  • A stronger role for counties in planning, working with district councils to plan for homes over a larger area, and to better align housebuilding and planning with infrastructure.
  • The government to make capacity funding available for counties to boost their capacity and skills in planning so they can develop housebuilding.
  • Allow councils to retain 100% of sale receipts from homes sold under Right to Buy that were built by council-owned housing companies so they can replace stock on a like-for-like basis.

Ultimately there are significant benefits for the government in taking on board the experiences of county councils scaling-up housing delivery to meet the country’s shortfall.

Kate Henderson, chief executive, Town and Country Planning Association

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