Councils Ask For Housing Discounts Following PWLB Rate Rise

Councils have asked the Treasury to offer discounts on public borrowing rates for housing after interest levels were hiked last week. The government told local authorities that it is increasing the cost of new borrowing from the Public Works Loan Board (PWLB) by 1%, bringing the rate to 1.8% over gilts, which sit at around 1%. The move has led to concerns in local authorities across the country that the increase could threaten planned housing and regeneration schemes. Town halls across the country have been putting in place huge borrowing programmes to build new homes after the government abolished the Housing Revenue Account (HRA) debt cap in October last year. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/councils-ask-for-housing-discounts-following-pwlb-rate-rise-63708?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60