20 of England’s largest local authority landlords call to save council homes

Southwark is one of 20 of England’s largest council landlords to jointly publish five solutions for the new Government to “secure the future of England’s council housing”.

In March, Directors from the cross-party group of local authorities met at a summit to address an increasingly urgent financial crisis. They have now released their five recommendations in the interim before their full report, authored by Toby Lloyd and Rose Grayston, is released later this year.

The report warns that England’s council housing system is “broken and its future is in danger”. New analysis from Savills shows that councils’ housing budgets will face a £2.2 billion ‘black hole’ by 2028.

Unless something is done soon, most council landlords will struggle to maintain their existing homes adequately or meet the huge new demands to improve them, let alone build new homes for social rent. Across the country development projects are being cancelled and delayed, with huge implications for the local construction sector, jobs and housing market.

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.

Their recommendations include 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:

1. A new fair and sustainable Housing Revenue Accounts (HRA) model – including an urgent £644 million one-off rescue injection, and long-term, certain rent and debt agreements.

2. Reforms to unsustainable Right to Buy policies.

3. Removing red tape on existing funding.

4. A new, long-term Green & Decent Homes Programme.

5. Urgent action to restart stalled building projects, avoiding the loss of construction sector capacity and a market downturn.

Councillor Kieron Williams, Leader of Southwark Council, said: “Our country’s largest council landlords have come together because we see every day how council homes transform lives for the better. For families across our country their council home is a foundation - giving them the security needed to put down roots, flourish in childhood, get on at work, stay healthy and age well.

“However, erratic policy choices from our last Government have left council housing finances completely broken and the system’s future is in danger. Councils are being forced to cancel new build developments, and even sell off council homes, to focus on keeping their existing residents safe.” country’s largest council landlords have come together because we see every day how council homes transform lives for the better. For families across our country their council home is a foundationgiving them the security needed to put down roots, flourish in childhood, get on at work, stay healthy and age well."

The 20 local authority landlords jointly publishing the report are: Birmingham City Council, Bristol City Council, Camden Council, Dudley Metropolitan Borough Council, Royal Borough of Greenwich, Hull City Council, Islington Council, Hackney Council, Kirklees Metropolitan Borough Council, Lambeth Council, Lewisham Council, City of Wolverhampton Council, Nottingham City Council, Leicester City Council, Newcastle City Council, Rotherham Metropolitan Borough Council, Leeds City Council, Sandwell Council, Sheffield City Council, Southwark Council.

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