Councils Still Face Numerous Barriers To Building Homes

Councils still face a number of obstacles to building more homes despite hopes that lifting the HRA cap would result in a development spree, new research has found. When the borrowing caps that restricted council house-building were lifted a year ago, the government said it heralded “a new generation of council homes,” but a new report by the Chartered Institute of Housing, National Federation of ALMOs and the Association of Retained Council Housing show councils still face obstacles to building more homes. Download the report from the CIH website.

http://www.cih.org/resources/PDF/Policy%20free%20download%20pdfs/LA%20New%20Build%20Report%20Jan20.pdf

District Councils Building Homes At ‘Considerable’ Pace

More homes are being built and planned for by more district councils in more places as a result of the lifting of the Housing Revenue Account cap, a new report reveals. And additional freedoms for non-stock holding councils could accelerate plans still further, the District Council’s Network (DCN) says. A DCN survey was commissioned to show that building plans are already advancing for a third of stock holding districts. The survey shows no councils are standing still, as the remaining two-thirds embark on plans to increase the supply of new homes, but that they need more powers and resources to effectively manage local housing markets. Read more on 24housing.

https://www.24housing.co.uk/news/district-councils-building-homes-at-considerable-pace/

May's Flagship Policy To Solve Housing Crisis Will Deliver No New Homes In Half Of England

Theresa May’s policy for a revival in council housebuilding will not deliver a single new home in more than half of the local authorities in England. The prime minister announced a major change that will see the government scrap restrictions on how much councils can borrow to fund housing. However, ministers have admitted that less than half of councils have the type of account that will allow them to increase their borrowing. Only 160 of the 326 councils in England with responsibility for housing have housing revenue accounts (HRAs). Councils set to miss out on the potential funding boost include several with some of the longest housing waiting lists in the country. Read more on the Independent website.

https://www.independent.co.uk/news/uk/politics/theresa-may-housing-policy-local-councils-rents-revenue-borrowing-half-england-a8617201.html

Government's New Council House Building Drive Will Come At Expense Of Housing Associations

The government’s council house building drive will come at the expense of fewer new units constructed by housing associations. The independent Office for Budget Responsibility said it expected new council house construction of 20,000 units over the period as a result of the lifting of the HRA cap. However, the OBR, also added that it expected this to crowd out private house building, with every two new council houses resulting in roughly one less new private house, meaning the net impact on new housing supply from lifting the cap would be only 9,000. Read more on the Independent website.

https://www.independent.co.uk/news/business/news/council-house-building-social-housing-associations-theresa-may-a8614281.html

Budget 2018: Housing

The Treasury has issued a summary of housing related measures announced in the Budget on 29 October 2018, including:

• a new Help to Buy Equity Loan scheme that will run from April 2021 for 2 years

• extending Stamp Duty Land Tax relief for first time buyers to purchases of all qualifying shared ownership properties

• further investment to deliver more homes, including an extra £500m for the Housing Infrastructure Fund

• confirming that the Housing Revenue Account cap that controls local authority borrowing for house building will be abolished from 29 October.

Read the full briefing on the Treasury website.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/752109/Housing_web.pdf

Betts: Government Needs To Lift HRA Cap

Clive Betts believes councils should be allowed to raise their own money in order to build homes their communities need. Betts stated he has “always been in favour of lifting the cap off the Housing Revenue Account”. He said: “If we are going to have real local freedom then the housing revenue account has to do that. Currently it is the only capital spending a local authority does which isn’t governed by prudential borrowing. Let’s take the cap off. The LGA and all local authorities have argued for that and I’d agree with them.” However, he believes a major barrier to councils building again is the loss of expertise in planning and housing development. Read more on 24housing.

Free Up Councils To Build Homes, Says Think Tank

The government must free up local authorities to take more decisions on how and where housing can be delivered, a new report says. Independent think tank Localis argues only by affording local authorities greater flexibility around finance and land can the government hope to achieve the million new homes target by 2020. The report ‘makes a series of recommendations to drive a ‘new surge’ in housebuilding, including;

·         HRA debt cap is lifted to better reflect local authorities’ ability to service debt.

·         Right to Buy receipts are fully retained locally, for local authorities to invest in replacing disposed stock.

·         Combined authorities are devolved powers to freeze land values as part of their Mayoral Development Corporation.

Read more on 24housing.

Core Cities Warn Over RTB And Social Rent Cut

A report by Core Cities UK has called for greater devolution of housing policy and funding, but warned government plans on Right to Buy and social rent reductions would limit investment. The report said: “Greater local flexibility to pool housing funds and apply them to distinctive local need will get better results.” In addition it called for a removal of Housing Revenue Account (HRA) caps and greater incentives to develop brownfield sites in order to “capture uplifts in land values”. It also warned that proposals on extending Right to Buy to housing associations, paid in part by forcing councils to sell off their high-value properties, and a 1% cut in social rents would “limit cities’ ability to invest and deliver”. Download the report from the Core Cities website.

Labour Plans for Housebuilding

The Labour party has released a report based on a commission led by Sir Michael Lyons into the housing and planning policies needed to reach the 200,000 homes-a-year target. The Lyons housing review states that under a Labour government:

·         Up to half of new homes will be reserved for sale to local people.

·         Councils will restrict the number of homes sold for buy-to-let.

·         Local authorities will be able to designate housing growth areas.

·         The planning inspectorate will have increased powers to force councils to develop a housing plan.

·         Local authorities will not be able to borrow money to build, but housing will be a priority of the government’s capital spend.

·         Councils that have reached the HRA cap will be able to borrow from other councils that haven’t.

·         Groups of local authorities could form new Homes Corporations with strong planning powers.

·         There will be measures to underwrite loans to help small builders.

Download the full report from the yourbritain website.