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Invest in 100,000 social homes per year as part of COVID-19 recovery, say councils
Council leaders are calling on the government to deliver 100,000 social homes per year, as part of the country’s coronavirus recovery strategy.
A new report by the Local Government Association (LGA) argues that a post-pandemic building boom is needed to provide homes for social care, health and other key workers, as well as families of those who have lost their lives during the COVID-19 crisis.
Delivering a large-scale social housebuilding programme would also help the government meet its target of delivering 300,000 new homes per year, alongside the 6,000 new homes pledged for rough sleepers, the report argues.
The LGA recommends the government stimulate the affordable housing market by bringing forward and increasing the £12bn extension of the Affordable Homes Programme, announced by the chancellor in the Spring Budget.
The report also calls for the next Affordable Homes Programme to place a greater focus on social rent.
Just 4% of the homes funded through the government’s Affordable Homes Programme between 2016 and 2019 were for social rent, with most funding going to affordable rent or shared ownership homes.
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The LGA is also urging the government to reform the Right to Buy by allowing councils to retain 100% of receipts from the sale of homes under the scheme and extending the deadline to spend this money to at least five years.
Meanwhile, councils should be given the power to set the size of Right to Buy discounts locally, the LGA argues.
According to the report, investing in the delivery of 100,000 social homes per year could return £320bn to the nation over the next 50 years.
It found that every £1 invested in a new social home generates £2.84 in the wider economy, while every new social home saves £780 in housing benefits per year.
David Renard, housing spokesperson at the LGA, said: “As the nation comes through the biggest crisis we have faced since the Second World War, we owe it to the health, care and other essential public service workers who have risked their lives to keep the country running to provide them with affordable, high-quality homes fit for heroes.
“The government should let councils take charge of the housing recovery, by giving them the powers and tools to build more of the affordable homes the country desperately needs.
“A programme of 100,000 social homes a year would not only meet a third of the Government’s house-building target, it would generate a range of social and economic benefits.
“Now is the time for a genuine renaissance in council housebuilding that reduces homelessness, gets people off the streets for good, supports people’s well-being and is climate-friendly.”
A spokesperson for the Ministry for Housing, Communities and Local Government said: “We recognise the significant contribution made by key workers during the coronavirus pandemic and thank them for all of their hard work.
“The government’s new First Homes scheme will cut the costs of some new homes by a third for first-time buyers, with councils able to prioritise front-line workers such as nurses and teachers for the scheme.
“Since 2010, we have delivered more than 464,500 new affordable homes and we are investing £12bn to build affordable homes between 2021/22 and 2025/26 – the biggest cash investment in affordable housing for a decade.”
