Councils call on Government to “save council homes”

Over 100 council landlords from across England, led by Southwark Council, have called on the new government to take urgent action to “save council homes” in a joint report presented at an event in Westminster. This unprecedented cross-party coalition warns that England’s council housing system is broken and proposes five key solutions to address the crisis.

The coalition’s report, building on an interim summary published in July by 20 of the largest council landlords, now has over 100 councils backing it. The report highlights a looming £2.2 billion “black hole” by 2028, as revealed by analysis from Savills, which threatens the ability of councils to maintain existing homes and invest in new social housing projects.

Councils warn that without immediate reforms, many will be forced to sell off more of their existing stock to finance necessary improvements, which would further shrink the already limited supply of council housing. Development projects across the country are being delayed or cancelled, impacting not only housing availability but also jobs and the local construction sector.

The report sets out five practical recommendations to help the government meet its promises on social housing:

1. A fair and sustainable Housing Revenue Account (HRA) model: This includes a one-time £644 million rescue injection and long-term rent and debt agreements to stabilize council housing finances.
2. Reforms to Right to Buy policies: Current policies are seen as unsustainable and in need of overhaul to preserve council housing stock.
3. Removing red tape on existing funding: Streamlining regulations to give councils more flexibility in how they invest in housing.
4. A long-term Green & Decent Homes Programme: A national initiative to bring all council homes up to modern, green, and safe living standards.
5. Urgent action to restart stalled building projects: Addressing the stalling of development, which threatens both the construction sector and the delivery of new homes.

Councillor Kieron Williams, Leader of Southwark Council, emphasised the critical importance of council homes as a foundation for families and urged the government to act on these solutions. He noted that the Deputy Prime Minister’s recent housing announcements suggest the government recognises the vital role of councils in delivering affordable housing, and the coalition’s plan offers a way forward to meet the country’s urgent housing needs.

By working together, local authorities and the government can ensure that existing council homes are modernised and that thousands of new homes are built, providing secure and affordable housing for generations to come.