By Neil Merrick
10 September 2009
Councils moved closer to regaining their role as house-builders this week after the government gave 47 the go-ahead to build more than 2,000 homes on land they already own.
In what amounts to the largest council house-building programme since the 1980s, the authorities will receive £127m from the Homes and Communities Agency and raise £124m themselves through prudential borrowing.
All the homes will be for social renting and most will meet higher eco-standards than required under general building regulations. Work is due to start within six months, at the same time as the HCA launches a second round of bidding.
Prime Minister Gordon Brown said the allocations, announced on September 9, would boost the construction industry by creating more than 5,000 jobs across England. ‘We now need councils to move fast and make the best possible use of this investment,’ he added.
Birmingham is to build 129 homes and Salford 101. In London, Ealing and Hillingdon each plan to build more than 50 homes.
The programme was originally worth £100m, including contributions by councils. In June, it was expanded by £360m as ministers attempted to kick-start house building.
The Local Government Association this week claimed it had been heavily over-subscribed and called on the Treasury to give councils more freedom to spend rent income and other resources on new homes.
LGA vice-chair Sir Jeremy Beecham promised there would be no return to the poorly designed council estates associated with earlier decades. ‘As the recession continues to bite and more people struggle to find a roof over their heads, it is more important than ever to give town halls extra powers,’ he said.
While the government has promised councils they can keep rent income from new homes, it is still consulting on more wide-ranging changes to housing finance.
HCA chief executive Sir Bob Kerslake said: ‘Local authority new build is another important stimulus to the housing market, empowering councils and allowing them to call the shots when it comes to local housing needs.’
10 September 2009
Councils moved closer to regaining their role as house-builders this week after the government gave 47 the go-ahead to build more than 2,000 homes on land they already own.
In what amounts to the largest council house-building programme since the 1980s, the authorities will receive £127m from the Homes and Communities Agency and raise £124m themselves through prudential borrowing.
All the homes will be for social renting and most will meet higher eco-standards than required under general building regulations. Work is due to start within six months, at the same time as the HCA launches a second round of bidding.
Prime Minister Gordon Brown said the allocations, announced on September 9, would boost the construction industry by creating more than 5,000 jobs across England. ‘We now need councils to move fast and make the best possible use of this investment,’ he added.
Birmingham is to build 129 homes and Salford 101. In London, Ealing and Hillingdon each plan to build more than 50 homes.
The programme was originally worth £100m, including contributions by councils. In June, it was expanded by £360m as ministers attempted to kick-start house building.
The Local Government Association this week claimed it had been heavily over-subscribed and called on the Treasury to give councils more freedom to spend rent income and other resources on new homes.
LGA vice-chair Sir Jeremy Beecham promised there would be no return to the poorly designed council estates associated with earlier decades. ‘As the recession continues to bite and more people struggle to find a roof over their heads, it is more important than ever to give town halls extra powers,’ he said.
While the government has promised councils they can keep rent income from new homes, it is still consulting on more wide-ranging changes to housing finance.
HCA chief executive Sir Bob Kerslake said: ‘Local authority new build is another important stimulus to the housing market, empowering councils and allowing them to call the shots when it comes to local housing needs.’
