Councils call for greater powers to tackle housing crisis

25 Jun 12
Town halls have appealed to ministers to let them tackle the housing shortage, which they are calling the ‘worst in a generation’.
By Vivienne Russell | 25 June 2012

Town halls have appealed to ministers to let them tackle the housing shortage, which they are calling the ‘worst in a generation’.

In a letter sent to housing minister Grant Shapps, the Local Government Association today said councils were ‘desperate to do more’ but Whitehall was holding them back.

It called on the government to give councils the powers to secure and invest sufficient money in new local infrastructure. It also said councils should not be compelled to renegotiate Section 106 planning agreements, a possibility raised in the Budget after some developers complained their infrastructure commitments were unaffordable.

Local authorities should also be given more financial freedoms, the LGA said. These should include removal of the Whitehall cap on the amount councils can borrow to finance housing, introduced as part of the Housing Revenue Account reforms.

Finally, the government should speed up the process through which empty homes are brought back into use, including giving councils power to levy higher charges on properties that have been left empty long-term. Empty Homes Management Orders, which allow councils to place tenants in empty housing, should also be reformed. The LGA wants councils to be able to put them to quicker and more efficient use.

In the letter, Keith House, vice chair of the LGA’s environment and housing board, said there was a nationwide need to build more homes.

‘Councils are working hard to deliver what they can, working innovatively with local partners, contributing land, and granting planning permission where development proposals are sustainable and meet local needs and aspirations. But they are desperate to do more,’ he said.

‘By arming councils with greater freedom and financial flexibilities, Whitehall could unlock the potential with local government and help deliver the homes this country so desperately needs.’

The letter has been sent to herald the LGA’s Housing the Nation campaign, which will launch at the association’s annual conference in Birmingham later this week. Spacer

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