Five months after announcing a £2bn fund to build a new generation of council homes, the government has not released the money.

A country that works for everyone

Theresa May promised the state would get “back in the business” of building social housing to address the shortage in a speech at the Conservative party conference in October.

Actions belie words

Andy Bounds in the FT notes that despite this commitment to funding social housing, government regulations have merely required private developers to build or fund so-called affordable housing, with rents at 20% per cent below the market average.

The Ministry of Housing said: “We are delivering the homes our country needs and since 2010 we have built over 357,000 new affordable properties.

Paul Dennett, mayor of Salford, wrote. “We are concerned and frustrated that . . . we still being advised by Homes England and partner registered providers [housing associations] that the guidelines for the allocation of grants to build homes for social rent have not been published, and that no date has been set for when this funding will be made available”. The letter was addressed to Sajid Javid, secretary of state for housing, who has not yet replied.

Councils want to build social housing which would pay for itself over time through rental income and increased property value, but the government currently prevents them from using the proceeds of social housing sales to build replacement homes. It has also restricted councils from borrowing to build houses themselves, although some have used reserves for modest building programmes.

Mr Dennett said that across the 10 boroughs of Greater Manchester, there are 84,000 people in temporary accommodation, with their rent paid for by local authorities: “Our housing bills are going through the roof. The government is making the right noises but we need action now.”

The Ministry of Housing said: “We are determined to do more and we are investing a further £9bn, including £2bn to help councils and housing associations build homes for social rent.”

 

When? And, if built, will they be alienated under the right to buy?

 

 

 

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