By Vivienne Russell | 31 January 2014
A review of social housing supply will consider how well councils are using their new freedoms under Housing Revenue Account reforms.
The review, launched yesterday by the Treasury and Department for Communities and Local Government, follows up on a commitment made in last month’s Autumn Statement to evaluate local authorities’ role in housing provision.
As well as HRA powers, it will ask whether councils are making maximum use of their existing asset base to support development through asset sales. It will also examine how well councils are using their own land, what innovative financing mechanisms might be used to increase housebuilding and how public sector housing development costs compare with the private sector.
The review, which ministers say will be independent and wide-ranging, will be chaired by Natalie Elphicke, chair of housebuilding campaign Million Homes, Million Lives and Keith House, leader of Eastleigh Borough Council.
Local Government Secretary Eric Pickles said: ‘Our reforms have already untied the hands of councils so they can take more responsibility for housing in there area. This review will now consider if extra freedoms and financial flexibilities could be devolved to councils, so they can build more homes that local people need.’
House added local authorities had a vital role to play in building homes of all tenures. ‘Our review will test how councils are meeting that challenge and where there is potential for innovation and creativity to increase the number of new homes built,’ he added.
The review will report by the end of 2014 to Pickles and Chief Secretary to the Treasury Danny Alexander.
It has been instructed not to produce any recommendations that breach the government’s fiscal consolidation plans or require changes to the national accounting framework.
