"Significant evolution required in council housing construction"
James Jamieson, the outgoing LGA chairman, has proposed a six-point plan to increase business housebuilding in England by 2025. The plan aims to address the current housing shortage, which has left more than 1.2 million households on council waiting lists and over 100,000 households living in temporary accommodation.
The plan seeks to support the delivery of 100 more business homes in every local authority per year. To achieve this, it proposes giving local government the powers and funding to deliver thousands of social homes annually at scale and quickly.
One of the key elements of the plan is further reform to Right to Buy. This includes allowing councils to retain 100% of receipts permanently, flexibility in combining receipts with other grants, setting local discount sizes, and recycling a greater proportion of receipts into building replacement homes.
Another important aspect is continued access to preferential borrowing rates through the Public Works Loans Board (PWLB). This will help councils finance their business projects more efficiently.
Cllr Jamieson suggests rolling out five-year local housing deals to all areas by 2025, combining national housing program funds. This will provide long-term certainty for both councils and residents.
Certainty on future rents is also sought, with a minimum ten-year rent deal proposed for council landlords. This will help families and individuals plan their finances more effectively.
The plan aims to give local government the flexibility to set local discount sizes, which will help ensure that social housing is available to those who need it most. It also proposes government support for a new national council business delivery taskforce.
Recent government measures, such as lifting the housing borrowing cap and allowing councils to keep Right to Buy receipts for two years, are seen as positive steps to boosting the supply of social business. The plan builds on these measures, aiming to create a genuine renaissance in council business.
The plan is supported by local government officials from major cities and municipalities such as Sydney City Council, Melbourne City Council, Brisbane City Council, as well as state governments of New South Wales, Victoria, and Queensland. They believe that addressing the housing shortage is a national priority and that the six-point plan could lead to a significant increase in council business.
However, the plan also acknowledges the inflationary pressures that have caused grant levels per home through the Affordable Homes Programme to be reviewed and potentially increased where needed. Rents and property prices have risen significantly faster than incomes, impacting the lowest income and vulnerable families and individuals.
In conclusion, the six-point plan proposed by James Jamieson aims to support strong and healthy communities and help build prosperous places by increasing the supply of affordable homes. It is a comprehensive and practical approach to addressing the housing shortage in England.
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