New government proposals may enable councils to build and rent more homes

Feb. 1, 2009
The government may grant councils more freedom to build homes as part of a consultation that was published in January. Changes to the Revenue and Capital Rules for New Council Housing proposed that councils could keep all the rental income from any homes they built, and also retain receipts from any of those homes later sold through Right to Buy. The money accumulated could be used to invest in building more homes, housing minister Margaret Beckett explained. Presently councils build just a few hundred houses a year, with registered social landlords (RSLs) delivering the majority. The proposals aimed to “remove some of the financial barriers stopping councils from building new properties and increase housing stock.” <br><br>Beckett encouraged councils interested in housing delivery to discuss their plans with the Homes and Communities Agency (HCA). She said: “We are determined to help keep housebuilding going in the current climate, as the long term need for more homes is not going to disappear. These new freedoms will encourage councils to play a bigger role in driving forward the delivery of new affordable homes for families in housing need.” <br>

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