Councils encouraged on social housing
Housing minister Yvette Cooper has said she wants to encourage more affordable housing by making councils give their “surplus” public sector land to newly established local housing companies (LHCs).
Claiming that this move marked a return to local authorities being “centre stage in providing homes for communities”, Cooper said that councils will be able to offer their own deals for key workers and first time buyers through new homes built on their land. Thousands more young families could get a step on to the housing ladder if councils took this option, she said.
“We urgently need to build more homes for first time buyers and families. That’s why we are investing £10.2bn to increase affordable and social housing. But government cannot deliver this alone. This is a new way to help councils to do their bit to support new homes for key workers and families in their areas.”
Councils tend to have little influence on how land they sell is used but LHCs would “put the destiny of that land back into the hands of councils”, Cooper claimed, “enabling them to double affordable housing levels to at least 50 per cent”. Under the scheme, the local authority would have a role in agreeing the development plan for land, including being able to offer ‘low cost’ housing deals to meet local needs. In return, private sector partners such as housing builders would put in the same level of investment and be responsible for building the homes.
Each LHC could have the potential to deliver up to 1000 new homes, Cooper said.
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