District councils have warned the social housing rent cut
will lead to a loss of £718.6m in rental income over four years, prompting them
to slash spending on new housing. The District Councils Network (DCN), which
represents 200 councils, surveyed 33 stock-holding district councils and 19
non-stock holding districts on the impact of the four-year 1% reduction in
social rents. It extrapolated the findings to all of its members and estimated
district councils will lose £718.6m over four years and £11.3bn over 30 years. To
cover the income shortfall, DCN predicts councils will slash spending on
building new homes by £210.8m, capital improvements by £167.6m, housing
management by £25.1m and debt refinancing by £24.9m. The councils have yet to
identify £266.3m of necessary spending reductions. Read more on the DCN
website.
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