By Richard Johnstone | 4 February 2014
A government review of social housing should give councils greater financial freedoms to boost development, the National Federation of Almos has said today.
The Treasury and Department for Communities and Local Government launched the review last week. It will examine how well councils are using freedoms under the Housing Revenue Account reforms that introduced self-financing. It followed a government commitment in December’s Autumn Statement to evaluate local authorities’ role in housing provision.
The NFA, which represents 47 arm’s-length management organisations spun out from authorities to manage council homes, said the review was a welcome examination of the role councils can play in meeting housing.
It urged all political parties to back investment in new council properties in their 2015 election manifestos.
This would help meet the rising demand for decent social housing across the country, policy director Chloe Fletcher said.
A £7bn investment over five years could build 60,000 new homes, and would also provide an economic boost to communities, generating 0.6% extra economic growth. In addition, 56p of every £1 spent would be returned to the Treasury through increased tax revenue and savings on benefits.
‘The government now acknowledges what we have stated for some time, that not enough action is being taken to address the severe shortage of affordable housing,’ Fletcher said.
‘We hope this review will go some way towards identifying the opportunities that a newly self-financed council housing sector has to build new homes and meet the needs of local residents for affordable homes. The NFA will continue to campaign for greater financial freedom for local authorities and councils.’
