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Exclusive research: councils set to quadruple development over the next five years
Councils are set to quadruple their housebuilding over the next five years as they seek to deliver around 80,000 homes, exclusive research from Inside Housing can reveal.
Freedom of Information Act data gathered from 240 town halls across England found that they have been directly involved in developing 18,999 homes over the past five years using all mechanisms.
But looking ahead towards 2024/25, they have ambitions to ramp up delivery to build 78,651 homes.
Of these, 54% are set to be delivered through the Housing Revenue Account (HRA), 35% are slated for housing companies and 10% are expected to be paid for by investment from local authorities’ general funds.
That represents a huge surge in the activity of housing companies, which accounted for 22% of the homes built over the past five years – some 4,353 units.
Barking & Dagenham, Croydon, Havering and Newham councils alone are now expecting to build 10,042 homes through companies over the next five years.
HRA development is also set to rocket, with councils eyeing 41,868 new homes, compared with 14,209 delivered since 2014/15.
Click here to see the full data
In October last year, then-prime minister Theresa May abolished the HRA cap, which placed a limit on how much councils were able to borrow to invest in housing.
Since then Liverpool and Peterborough councils have announced plans to re-establish their HRAs to build new homes, with more authorities understood to be considering doing so.
Nine of the 10 councils with the biggest overall pipelines are in the capital, with the 25 of 33 London authorities captured in our survey plotting 34,969 homes between them.
Darren Rodwell, leader of Barking & Dagenham Council and executive member for housing and planning at London Councils, said: “It’s fair to say that London is pulsing and we are bursting at the seams when it comes to need for good-quality affordable homes.
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“I think we’ll be the new larger entity of London housebuilding moving forwards.”
Councils across England identified £8.4bn of earmarked investment in housing – though the true figure will be significantly higher as many councils have not yet confirmed budgets.
However, yesterday the Local Government Association was warning that building projects could be cancelled after the Treasury raised the Public Works Loan Board interest rate.
Our data identified 21 councils which have not built any homes in the previous five years are outlining plans to start, while 12 more are setting up housing companies or actively exploring the possibility.
Of homes delivered by councils in the past five years across all mechanisms, 23% were for social rent, 49% were for affordable rent and 6% were for affordable homeownership products such as shared ownership.
Market sale made up 19% of the homes completed, while 2% were for market rent and 1% were for temporary accommodation.
Click here for the full research
Update: at 9.17am on 16 October
The figure for homes planned by Greenwich Council through its housing company is 226 and not 750 as originally reported based on figures provided by the council. We have amended the figure and the overall number for planned council homes changed slightly as a result.
Update: at 10.07am on 22 October
The figure for homes planned by Ealing Council through its HRA and housing company is 2,037 and not 1,350 as originally reported based on figures provided by the council. We have amended the figure and the overall number for planned council homes changed slightly as a result.
