More than 100 council landlords in England are urging the new government
More than 100 council landlords in England are urging the new government to take action to preserve council housing.
On September 3rd, during an event in Westminster, a historic cross-party alliance of more than 100 council landlords, led by Southwark Council, collectively released five proposals aimed at helping the government “secure the future of England’s council housing.” They expressed concerns that the current system for council housing in England is fundamentally flawed and emphasized that prompt action is essential for the government to fulfill its housing commitments.
Back in July, twenty of the largest council landlords had already published a preliminary summary of their recommendations. This gained significant momentum—including an urgent meeting with the Deputy Prime Minister—resulting in over 80 additional councils endorsing these recommendations and signing onto the final document.
The comprehensive report, spearheaded by Southwark Council along with insights from housing policy specialists Toby Lloyd and Rose Grayston, outlines a detailed strategy to revitalize our nation’s council housing over the coming ten years. It also highlights crucial policy reforms necessary for realizing the new government’s aspirations regarding social housing.
The report discusses how an unsustainable financial framework combined with inconsistent national policies have strained councils’ housing budgets and driven up costs dramatically. Recent analysis from Savills indicates they could encounter a £2.2 billion ‘deficit’ by 2028.
They caution that if swift measures are not taken soon, most council landlords will find it challenging to adequately maintain their current properties or respond effectively to pressing needs for improvements—as well as struggle to construct new homes designated for social rent. All across England, development projects are facing cancellations or postponements, which poses serious consequences for local construction industries.
Rather than increasing supply, the reality is that some councils will have no option but to sell more of their existing stock to finance investment in an ever-shrinking portfolio of council homes.
The recommendations included urgent action to restore lost income and unlock local authority capacity to work with the new government to deliver its promises for new, affordable homes throughout the country.
The five solutions set out detailed and practical recommendations to the new government:
- A new fair and sustainable HRA model – including an urgent £644 million one-off rescue injection, and long-term, certain rent and debt agreements.
- Reforms to unsustainable Right to Buy policies
- Removing red tape on existing funding
- A new, long-term Green & Decent Homes Programme
- Urgent action to restart stalled building projects, avoiding the loss of construction sector capacity and a market downturn
They have devised a strategy for a ‘decade of renewal’, where local governments and central authorities collaborate to stabilize ‘Housing Revenue Accounts’ (HRAs), ensure that all residences are updated to modern, environmentally-friendly standards, and produce the next generation of council housing.
Councillor Kieron Williams, Leader of Southwark Council, said:
“This unprecedented coalition of councils – representing every corner of England – is united in our determination to ensure our residents have decent and affordable homes. For families across our country their council home is a foundation – giving them the security needed to put down roots and flourish.
Our new government has committed to delivering the biggest increase to affordable and social housing in a generation. The Deputy Prime Minister’s recent announcements demonstrate that they know the critical role councils will play in reaching this ambition. However, the reality is that our national council housing finances are on the brink.
Our five solutions offer the new government an opportunity to turn this around – lifting the council homes we have up to modern, safe, healthy and green standards, and delivering the thousands more council homes that our country urgently needs. By investing in them together, we can transform lives for the better for generations to come.”
Tony Dyer, leader of Bristol City Council said:
“Bristol remains firmly in the grip of a housing crisis which continues to affect communities city-wide. While we continue to be proactive in trying to meet our ever-growing need for homes, increasing demand and costs makes this difficult.
“I welcome the recommendations outlined in Southwark Council’s report and I am proud to be one of the many council voices united in support for a new relationship between central government and local authorities.”
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