Government plans to boost the supply of new affordable housing through a package of measures that includes: £500m in new funding for the Affordable Homes
Programme; a five-year social housing rent settlement; and allowing local
authorities to keep 100% of the receipts generated by a Right to Buy sale, have been welcomed by London Councils as "hugely welcome news".
Responding to the measures announced on Monday, London Councils’ Executive Member for Housing &
Regeneration, Cllr Grace Williams, said: "Increasing investment in the Affordable Homes Programme and
allowing councils to retain 100% of Right to Buy receipts will help boost the
construction of much-needed social and affordable homes. Reducing the Right to
Buy discounts will also better protect existing and newly-built council homes –
a crucial resource in boroughs' efforts to support families at the sharp end of
the housing crisis.
"The government is right to recognise the importance of
putting social housing finances on a sustainable footing and the proposal for a
new five-year rent settlement is a positive step. London boroughs face a black
hole of £700m in their social housing budgets over the next four years as the
costs of maintenance, repairs, and vital safety improvements outpace boroughs’
rental income.
“We will be making the case for a 10-year settlement in the
forthcoming consultation, alongside a review of the existing debt settlement
for Housing Revenue Accounts. These further support measures would ensure
long-term stability and maximise boroughs’ ability to drive up housebuilding,
which is so crucial to the government’s missions."