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44% of councils have housing company, report finds

Nearly half of councils have set up a housing company in a bid to help deliver new homes, according to a new report.

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The study, carried out by academics from University College London (UCL) on behalf of the National Planning Forum and the Royal Town Planning Institute (RTPI), has estimated that 44% of the 353 local authorities in England have set up their own companies.

It found that two-thirds of councils, or 65%, are directly involved in housing delivery, with a further 22% considering moving into active provision.

Inside Housing revealed a year ago that more than a third of councils had set up housing companies or were considering doing so.

Councils continue to set up new commercial delivery vehicles outside the Housing Revenue Account (HRA) at a rapid rate, with the report identifying 30 new companies established in 2017.

Only a handful of councils had set up housing companies before 2015.


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At least 1,897 homes have been delivered through these companies, with 264 for social rent, 452 for affordable rent and 442 for market sale – though the report notes that the majority of councils did not provide delivery figures.

Eastbourne, Blackpool, Stevenage, and Staffordshire Moorlands are among the councils which have delivered the most homes through housing companies.

Helping to supply housing not provided by the private sector and easing homelessness were the main reasons cited for council housebuilding.

“Public sector housebuilding today has evolved into a more dynamic and diversified activity. Austerity, market forces and the political landscape have prompted councils to return to housing provision with a wider remit,” said Janice Morphet, professor at UCL’s Bartlett School of Planning.

“The appetite and ambition to build is there, and they could do more by learning from each other. Some changes in government policy could help to get it going at a wider scale.”

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The report recommends that the government remove the HRA debt cap and allow councils to retain all Right to Buy receipts, as well as calling on local authorities “to consider the range of potential initiatives available to provide housing”.

Councils responding to the study said a lack of land and the HRA cap were the biggest barriers to further development.

Stephen Wilkinson, president of the RTPI, said: “Having local authorities back as key players in the housing market is vital to tackling the housing crisis. The chancellor’s move to lift the HRA cap will have some positive impact, but this needs to be rolled out more widely and quickly.

“We also need more drastic measures to help councils access land at the right price to develop themselves or sell to earn the income they need. Government should also consider a more direct role in increasing supply and influencing the location of housing.”

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