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Housing

Over two thirds of councils in England have paused, delayed or cancelled housebuilding projects according to latest research: A recent study of the future of council housing in England over the next five years has revealed the major financial strain many councils are under. Just over two-thirds (61%) confirmed they had already had to pause, delay or cancel new build projects and almost three quarters (71%) expected they would need to take further such action before the next general election.

The research, commissioned by Southwark Council, surveyed 76 out of 112 stock-holding councils across England (which collectively manage over 870,000 council homes) to assess how financial difficulties and their need to balance their books by the end of this parliament are affecting their ability to maintain existing council homes and to construct new ones. Of those councils surveyed, almost three in ten (28%) said they expected they would have to sell off existing council homes to raise much needed finances, while over two thirds (67%) admitted they may be unable to balance their housing budgets by 2029/30.

Despite last year’s government announcement that all councils in England would be given new mandatory housing targets to deliver one and a half million new homes by the end of this current parliament, over two-thirds (68%) of the councils surveyed said scaling back on their commitments to redevelop or build new council homes was a certainty.  

A further concern is that nearly two-fifths (37%) of councils stated they have had to reduce repairs and maintenance of their existing council properties, potentially leaving many council homes in a state of disrepair.

While acknowledging that the government's target of 1.5 million new council homes by 2029/30 is the key to solving the housing crisis, Southwark Council acknowledge that initiative-taking government intervention will be crucial in ensuring this housing target is realised.

Councillor Kieron Williams, leader of Southwark Council, said: “The government’s ambition to build 1.5 million new homes is critical to ending the housing crisis and council housing must play a central role in this effort. However, without significant further action councils will be unable to build at scale and unable to bring existing homes up to green and decent standards fit for the future.”

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