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LGA warns of ‘hopelessness’ among young would-be buyers
The Local Government Association (LGA) has warned young people are facing “hopelessness” in their ambition to buy a home.
In a statement issued today, the umbrella group for local councils called for additional borrowing powers to allow councils to build high volumes of affordable homes to help boost ownership.
It pointed to figures from last month’s English Housing Survey, which showed 59% of private renters in England expect never to buy their own home because of spiralling housing costs.
Authorities should be given more flexibility to borrow for housebuilding investment and be allowed to keep 100% of receipts from homes sold through the Right to Buy policy, the LGA said.
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Housing Revenue Account borrowing is currently capped and councils can only retain a third of proceeds from selling homes under the Right to Buy.
Martin Tett, housing spokesperson for the LGA and leader of Buckinghamshire County Council, said: “It’s worrying that so many people renting a home feel a sense of homeowning hopelessness.
“We know that the shortage of houses is a top concern for people as homes are too often unavailable, unaffordable and not appropriate for the different needs in our communities. All types of homes – including those for affordable and social rent – have to be built to solve this shortage, boost affordability and increase homeownership.”
Housing funding for councils has become a talking point in the wake of the Grenfell Tower disaster, with councils calling on the government to be allowed to borrow more to pay for fire safety work.
Three councils – Sheffield City Council, Stoke-on-Trent City Council and ALMO Newark and Sherwood Homes – have met the Department for Communities and Local Government to discuss special deals to raise their borrowing caps.
