Nearly half of councils in England have either set up a housing company or are considering doing so, according to a new survey.
The research, conducted by 3Fox International, shows 12% of councils have already created a housing company to generate income from developments, with 34% actively debating the idea.
The survey showed that the main driver for setting up a housing company was the need to provide a long-term housing solution (61%), with a third saying the main objective was to raise money.
Pat Hayes, executive director regeneration and housing at the London Borough of Ealing, said the council had set up Broadway Living in 2014 to tackle a specific housing issue in the borough.
‘I am surprised so many authorities have set up housing companies or are thinking about it,’ he said. ‘We set ours up to address a specific housing issue; namely, the lack of good-quality, institutionally-funded, market-price, rental accommodation.
‘I am slightly concerned that some authorities may see housing companies simply as a way of generating a financial surplus, rather than a means of intervening in the housing market to catalyse the delivery of intermediate price accommodation.’
