Council housebuilding 'at its highest since 1990'

Research published by the Royal Town Planning Institute shows an almost 30-year high in council housebuilding.

Comprehensive research published by the Royal Town Planning Institute (RTPI) concluded that more than 13,000 homes may have been delivered by English local authorities last year – which would be the highest since 1990.

Prime Minister Theresa May scrapped the Housing Revenue Account (HRA) borrowing cap last year, allowing councils to raise more cash for construction – a decision hailed by housebuilders at the time as 'exciting'.

The RTPI received survey responses from 142 councils, with 69% saying they had directly engaged in housebuilding over the past year, at an average of 55 units each. 

They also identified 8,992 residences that had been delivered in the nine months to May 2019 by 83 local authorities. Of these, 42% were affordable, 23% social, 10% intermediate, 16% for market sale and 8% for private rent.

Eight in ten councils polled had a wholly-owned housing company.

RTPI President Ian Tant said: "Having local authorities back as key players in the housing market is vital to tackling the housing crisis. It's great news that they are becoming more active again, delivering a wide range of house types to meet a wide range of needs." 

The RTPI concluded that the HRA still restricted council housebuilding. It called for ministers to allow local authorities to borrow against their assets and rent income in the same way as registered providers and the private sector; and also for separate funding to be available to those without an HRA. 

The body also identified land restrictions as another brake on building.

Tant said: "Lack of land is still a major issue. The government needs to help councils access land at the right price to develop themselves or sell to earn the income they need. Government should also consider a more direct role in increasing supply and influencing the location of housing."

A version of this article first appeared in Architects' Journal

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Housing