Local housing deals could deliver almost 200,000 new social homes over the next 30 years, LGA says

Introducing five-year funding schemes for local authorities would lead to 200,000 more social homes being built over 30 years, according to the Local Government Association.

Prior to the election, the National Housing Federation and Shelter, as well as the last Levelling Up, Housing and Communities Committee and the housing association Places for People were calling on the government to increase delivery of social rented homes to 90,000 homes a year.

According to the LGA’s analysis, five-year funding cycles could boost social housing delivery by around 6,600 homes per year. 

The Local Government Association’s (LGA) white paper produced by Pragmatix Advisory found that consistent funding levels and appropriate devolution of decision-making would help increase social housebuilding by 21%.

In addition, introducing longer-term housing deals would reduce administrative costs for local authorities and free up civil servant resources.

The report added that by reducing volatility in construction and its supply chain, resources can be better utilised across years with shorter lead times, speedier project delivery and reduced risk.

The report said an analysis of historical social housing build rates compared to long-term trends showed that 11% more homes could have been built if construction activity had been more consistent and had avoided “boom-and-bust cycles of housebuilding” caused by short-term thinking.

Over the longer term, the LGA said the benefits of five-year housing regimes would be magnified.

Over 30 years, and with increased funding, it could lead to the construction of nearly 500,000 additional new homes for social rent.

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Cllr Claire Holland, housing spokesperson for the LGA, said: “Over the last 30 years, growth in the housing stock has stagnated and the number of housing completions is failing to keep up with demand.

”The only way to solve this country’s housing crisis is by giving councils the powers and resources to build more of the genuinely affordable homes our communities desperately need.

“Councils know their areas best and need the autonomy and funding certainty to be able to deliver long-term plans for housebuilding in their local areas.

“Five-year local housing deals are crucial to give local areas the powers to build more affordable, good quality homes at scale, quickly, where they are needed.”

In response to the government’s announcement on planning reforms yesterday, Holland said the government had “laid out some positive first steps on affordable housing”.

She added that “consultation on the Right to Buy scheme is positive news for councils who have seen their stock significantly diminish under the scheme and we look forward to working with government on its ongoing review.”

Holland continued: “Local government stands ready to work with national government on their detailed delivery plans to ensure practical solutions to these long-standing problems are found.”

She emphasised that “while national government can provide useful guidance, it is local councils and communities who know their areas best, so changes to national planning policy should be suitably flexible to allow authorities to make judgement decisions on managing competing demands for uses in their local areas.”

Holland said the LGA will look carefully at the proposed changes to planning policy and housing targets.

She added: “In order to deliver more housing, councils need the proper levers to deliver proposals that genuinely support a faster build-out of schemes.

”This includes urgently introducing a ‘stalled sites’ council tax premium, as well as a streamlined compulsory purchase process to acquire stalled sites or sites where developers do not build out to agreed rates.

“Action is also needed to ensure viability assessments are fair.”