UK aims to build 300,000 more council homes
New measures unveiled by the Housing Secretary on Wednesday (28 January) will give councils, housing associations, and other providers greater financial support to ramp up construction of new homes.
This will deliver on government plans to bring down record-high numbers of families and children stuck in temporary accommodation or on housing waiting lists.
Landlords will also have to meet robust standards to provide homes that are free of disrepair and damp, warm and energy efficient homes through a new Decent Homes Standard (DHS), updating decency standards for the first time in 20 years.
This is on top of new requirements to upgrade properties under new Minimum Energy Efficiency Standards that could save social tenants hundreds of pounds every year on their energy bills.
Empowering councils
Councils who have not built in years will be empowered to start building again as government removes administrative costs of council house building. Councils will be able to build up to 1,000 new homes without having to open a new Housing Revenue Account. This is a ring-fenced account for councils to manage their housing income and expenditure but comes with a set of administrative costs to open and operate.
Decisive action is also being taken to unlock homes delivered through Section 106 agreements where no affordable housing provider is willing to buy, with a new emergency, time-limited approach that will allow the tenure of uncontracted Section 106 units to be varied in such circumstances.
In tandem, the government will work hand-in-glove with providers, councils, and developers to agree a framework to get the Section 106 market moving again, with new measures to reset and expand the market, simplify the process, and boost financial capacity of providers to buy these homes.
Overhauling living standards
Alongside building more homes, the government is overhauling living standards for millions of existing tenants. A new DHS will apply minimum standards to improve the quality of all social homes, including the condition of roofs, doors and windows, and a more robust response to tackle damp and mould – building on phase one of Awaab’s Law to fix these hazards within strict timeframes. It will also apply to privately rented homes for the first time.
From 2030, social landlords will also be required to upgrade homes to meet new energy efficiency standards, and this could include improving insulation, putting in solar panels, or installing modern heating systems such as heat pumps. This will not only slash the cost of heating for families but also make homes warmer.
The government’s ambition is to deliver around 300,000 new social and affordable homes over the SAHP’s lifetime, with a target of at least 60% of homes for social rent. If achieved, the programme could deliver around six times more than the number of grant-funded social rent homes delivered in decade up to 2024.
