How to build momentum to secure the future of council housing

Acknowledging the “compelling case” set out by our coalition, the minister set out how the government has “taken decisive action to back you in this crucial endeavour”.

From reducing Right to Buy discounts, to introducing a longer-term rent settlement, to providing more funding for social and affordable housing, the government has taken decisive, and very welcome, steps to support council housing. Recently we were delighted to see the deputy prime minister announce a further £2bn to support new social and affordable housing.

Taken together, these steps are a big help for councils like ours. But there are still major challenges.

In January this year, a survey of 76 stockholding councils collectively managing over 870,000 council homes across the country, highlighted the financial pressures impacting this form of housing. Years of financial strain caused by capped incomes, soaring costs and frequent policy changes since 2010 have forced councils to reduce their maintenance of homes, cancel new-build projects and sell off housing stock. 

“Years of financial strain caused by capped incomes, soaring costs and policy changes have forced councils to reduce their maintenance of homes, cancel new-build projects and sell off housing stock”

Overall, the survey found nine in 10 council housing budgets were under financial stress.

The Securing the Future of Council Housing report set out a number of recommendations to the government to save council housing. Lots of action has been taken and there is still work to do.

We still need to agree on a new, sustainable Housing Revenue Account (HRA) financial model, going back to the broken 2012 HRA ‘self-financing’ agreement, including reaffirming the principles that make self-financing sustainable, a fair rent settlement and addressing unsustainable debt.

We need a green and decent homes programme, based on the success of the Decent Homes Standard: a long-term programme of capital investment to efficiently retrofit and modernise England’s social housing stock.

Further, we must allocate sufficient funding for new council homes. The successor to the Affordable Homes Programme should be flexible, prioritise council homes and reflect the real cost of building.

One of the key requirements to fix council housing budgets is to agree rent levels for the long term. Councils across the country are calling for a longer-term plan to achieve rent convergence, which would mean rents are set based on the value of properties and local earnings.

The last time England was building 300,000 homes a year, around half were delivered by councils. Councils play a critical role in meeting the government’s ambitions for 1.5 million new homes.

It would be far too easy to remain static, accept defeat, or see the task of building more homes and meeting the housing crisis head on as impossible. The sheer scale of the problem is intimidating.

“It would be far too easy to remain static, accept defeat, or see the task of building more homes and meeting the housing crisis head on as impossible. The sheer scale of the problem is intimidating”

But in the hearts of all those who work in housing in local authorities are the people we cannot let down. Each family facing the grim and terrifying reality of homelessness, of just needing somewhere warm and safe to call home, is what drives us forward.

So what is next? As the government prepares to unveil its long-term housing strategy and Comprehensive Spending Review in June, we will be putting forward our green and decent homes proposal ahead of this. It will outline 10 essential principles that must guide the government’s approach to making our existing council homes truly green, decent, safe and secure.

We will keep working with our partner councils, supporting the government to secure the future of council homes for generations to come.

Kieron Williams, leader, Southwark Council, and Tom Hunt, leader, Sheffield City Council