Ellie Ames 20 January 2025

Nine in 10 council housing budgets under financial stress

Nine in 10 council housing budgets under financial stress image
Image: 1000 Words / Shutterstock.com

Local authorities have warned in a new survey that they may be unable to balance their books because of pressure on their council housing budgets.

A survey of 76 local authorities that manage their own council homes found that for nine in 10, council housing budgets were under stress. It means these councils had taken, or expected to take, ‘substantial’ action or use emergency funds to balance their books by 2029.

The research, published by Southwark Council, revealed that 61% of councils had already cancelled, paused or delayed housebuilding projects and more than a third had cut back on repairs and maintenance of council homes.

In order to balance their budgets before the next General Election, 28% of councils said they expected to sell off existing council homes to make ends meet.

Southwark Council leader Kieron Williams 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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