William Eichler 11 July 2024

Council housing landlords warn of £2.2bn ‘black hole’

Council housing landlords warn of £2.2bn ‘black hole’ image
Image: Clare Louise Jackson / Shutterstock.com.

Twenty of England’s largest local authority landlords have warned that the council housing financial model is ‘unsustainable’ with councils’ housing budgets facing a £2.2bn ‘black hole’.

A cross-party group of local authorities – including Birmingham City Council, Leeds City Council and Camden Council – warned that England’s council housing system has been hit hard by a lack of funding and ‘erratic’ national policy changes.

New analysis from Savills cited by the group shows that councils’ housing budgets will face a £2.2bn ‘black hole’ by 2028.

Ahead of a full report to be published later this year, the group of council landlords have published five solutions for the new government to ‘secure the future of England’s council housing’.

The solutions are as follows:

1. A new fair and sustainable HRA model – including an urgent £644m 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.

Cllr 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.

‘We are releasing this interim report now, from England’s largest council landlords, because we want to work with the new government from day one to deliver the more and better council homes that our communities need.’

To find out more about what local government stakeholders want from the new government, check out our guide, Transforming Local Government: A Strategic Guide for Labour. Download your complimentary copy now!

SIGN UP
For your free daily news bulletin
Highways jobs

HR Onboarding Officer (CDC)

City Of Doncaster Council
Grade 7, £27,259 - £29,955 (Pay award pending)
You have an opportunity to be part of a busy Human Resources team which offers HR support across the Council. Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council

Purchase to Pay Administrator (Fixed Term) - WMF2122e

Westmorland and Furness Council
£25,584 - £25,992
We are looking for an Administrator to join our Purchase to Pay and Accounts Receivables team Cumbria / Various
Recuriter: Westmorland and Furness Council

Social Worker - WMF2123e

Westmorland and Furness Council
£41,511 - £42,708
We’re looking for passionate social workers to join our team in Kendal following a recent reshape of our services. Kendal, Cumbria
Recuriter: Westmorland and Furness Council

Environmental Health Officer

Wyre Borough Council
£38,626 - £41,511
We are looking to appoint a full time Environmental Health Officer within the Environmental Protection and Community Safety Department. Poulton-Le-Fylde, Lancashire
Recuriter: Wyre Borough Council

Trainee Graduate Accountant

Wyre Borough Council
£25,992 - £37,938
Are you looking to kickstart your career in Finance? Poulton-Le-Fylde, Lancashire
Recuriter: Wyre Borough Council
Linkedin Banner