Council housing crisis looms as authorities call for action

Council housing crisis looms as authorities call for action

9:27 AM, 15th July 2024, About 3 months ago 7

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England’s largest council house landlords are raising the alarm about the future of council housing because of a financial crisis

In a report by 20 of the largest local authorities, they say that years of ‘erratic national policy changes’ and an ‘unsustainable financial model’ have squeezed council budgets.

An independent analysis predicts that councils will face a £2.2 billion ‘black hole’ in council housing budgets by 2028.

This funding gap threatens the ability of local authorities to maintain existing properties, meet energy efficiency standards, or build new homes for social rent.

They will also, the councils claim, have to sell off more of their housing stock to pay for investment.

Council homes transform lives

The leader of Southwark Council, Councillor Kieron Williams, 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.”

He added: “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.”

Potential domino effect of this crisis

The report highlights the potential domino effect of this crisis with stalled development projects that could lead to job losses in the construction sector and a downturn in the housing market.

To prevent this scenario, the council landlords are urging the new government to take immediate action.

Their five-point plan includes a one-off financial injection of £644 million, reforms to the ‘Right to Buy’ scheme, and a long-term plan for sustainable funding.

‘Deliver more and better council homes’

Councillor Williams said: “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 more and better council homes that our communities need.

“With a growing number of council landlords on the brink, urgent action is needed to put our national council housing finances back on firm foundations.

“Our five solutions set out how we can work together to achieve this, and to secure council housing for generations to come.”

Other recommendations include reforming ‘unsustainable’ Right to Buy policies, removing red tape on existing funding and developing a ‘Green & Decent Homes Programme’.


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Reluctant Landlord

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10:00 AM, 15th July 2024, About 3 months ago

Councils can't even keep a pace on basic repairs. maintenance and annual gas/safety checks as it is.
None of them are even close to being able to implement and find the money for Awaabs Law and that was live legislation from April.

The only properties they can sell off are going to be the ones that are already empty which they have no money to invest in or make habitable, so who is going to buy them? They will probably just remain empty. No private LL's are going to want to bother if they are that badly maintained and need a huge amount of cash (to get up to EPC C if that threat comes back) and if not in a great area, rent potential will be capped and probably the type of tenant base too. Why bother? No big investor is going to be interested either - they want large scale flats/blocks in areas where private payers want to be located.

As a result expect to see Selective Licencing introduced at pace now in every council....they all need money in the coffers as fast as possible with very little effort to get it.

The prs is a sitting duck.

havens havens

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10:37 AM, 15th July 2024, About 3 months ago

It's concerning to hear about the financial challenges facing council housing. The impact on maintaining existing properties, meeting energy efficiency standards, and building new homes for social rent is significant. It's clear that sustainable funding and reforms to support council landlords are urgently needed.

The proposed five-point plan seems like a practical approach to address these issues, particularly the call for a one-off financial injection and reforms to the 'Right to Buy' scheme. These steps could help stabilize council housing finances and ensure continued support for our communities.

Let's hope the new government takes decisive action to secure the future of council housing. It's crucial for providing stable homes and opportunities for so many families.

Stella

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11:28 AM, 15th July 2024, About 3 months ago

Reply to the comment left by Reluctant Landlord at 15/07/2024 - 10:00
We purchased an ex-council flat in 1996 which we have let ever since.
All the major problem such as penetrating damp (which caused major problems to tenants and a lot of expense to me) and drainage problems were all as a result of the Councils lack of maintenance and taking far too long to deal with the problems once they were notified.
Major works also cost a fortune, about 20 years ago when the Council decided to repair the roof and walkways and install new front doors the cost to us as leaseholders of a 2 bed flat was £20,000
I am not surprised there are problems!

Reluctant Landlord

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13:17 PM, 15th July 2024, About 3 months ago

Reply to the comment left by Stella at 15/07/2024 - 11:28
and no surprise either that they have been left empty for years.
I would stick my neck out and say there is no (sane) LL that is going to want to buy a property such as this now due to all the work and cost required bearing in mind the future proofing aspect (EPC C) that will have to be taken into consideration too. Issues getting trusted trades too not helping.

I see properties like these possibly shifting at auction only to LL's where quick fixes are done just to be able to let asap. Nothing to the right standard and where application for selective licences for example will be ignored.

Cash only rents and no proper AST's. Everything under the radar. Letting to 'illegals' is inevitable - they are not likely to go complaining about property condition are they? Problems? send 'Dave' in to remove tenant...
With a shortage of accommodation there is money to be made and also tenants to be taken advantage of .....

Cider Drinker

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17:11 PM, 15th July 2024, About 3 months ago

Councils need more money to fund the lifestyles of those that choose not to work.

If they target the PRS through Selective Licensing then it will be private tenants that help fund the work shy amongst us.

Michael Booth

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16:17 PM, 19th July 2024, About 3 months ago

Prs is a cash cow riped to be milked its has simple has that.

Natty

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8:25 AM, 23rd July 2024, About 3 months ago

These councils have the audustity to stipulate that the PRS need to carry out repairs, upgrades, improve on EPC and put selective licencing in place to put private landlords under scrutiny but because they have no money they seem to get away with it yet private landlords too are struggling with increases costs with mortgages etc.

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