May paves way for next generation of council houses

The Prime Minister has cleared the way for a surge in council house building by announcing plans to lift the housing borrowing cap on councils.

It means local authorities will be able to take on big loans against the value of their housing stock to fund ambitious council house building plans.

The amount of extra investment in housing could be around £1bn a year, but this will depend on how many councils decide to borrow.

Announcing the radical plan, Theresa May said: “Solving the housing crisis is the biggest domestic policy challenge of our generation. It doesn’t make sense to stop councils from playing their part in solving it.

“So today I can announce that we are scrapping that cap.

“We will help you get on the housing ladder and we will build the homes this country needs.”

Inside Housing’s FAQ’s on the removal of the cap can be found at https://www.insidehousing.co.uk/insight/popping-caps-common-questions-on-the-hra-announcement-answered-58526

Councils seeking to increase their development programme are invited to contact us at Askival for advice and support with delivery.