Councils warn financial constraints threaten new housing delivery
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Most local authorities will struggle to deliver new social housing at scale as their budgets are on the “brink of collapse”, according to research suggesting the Government’s “council housing revolution” may be in jeopardy. A survey found two-thirds of 76 councils managing more than 870,000 homes said the viability of their dedicated budgets are under threat, with a risk many will not be able to balance the books by the end of the decade.
The research, commissioned by Southwark Council, also showed 93% of councils’ housing budgets are showing signs of financial stress, with these councils taking or expecting to take “substantial action” – including tapping into emergency funds.
In total, 61% of councils have already cancelled, paused or delayed housebuilding projects, while more than a third have cut back on repairs and maintenance of council homes. Nearly three-quarters (71%) said they expect to abandon, pause or delay current council housing projects, while 68% are preparing to scale back commitments to redevelop or build new homes.
In addition, 28% of councils said they are likely to sell council homes in a bid to secure financial stability, with 67% confirming that, under current circumstances, there is high risk they will not be able to set a balanced budget by 2029. Boosting the supply of council and social housing is a key element of Labour’s pledge to deliver 1.5 million new homes.
