Government plans to scrap limit on council borrowing for social housing
Prime Minister Theresa May recently announced Government plans to remove the cap on how much local authorities can borrow to build housing, paving the way for a rise in social housing projects.
At the Conservative Party Conference in Birmingham on 3th October, the Prime Minister revealed that it will soon be easier for councils to invest in social housing, allowing them to meet local needs.
At present there is a limit on the amount councils can borrow in relation to the Housing Revenue Account to build new homes. Now, the Government plans to scrap that limit.
In her speech, the Prime Minister 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.”
The Prime Minister made the statements in reference to ‘solving the housing crisis’, and her announcement was met with general praise across the industry.
Chief Executive, Federation of Master Builders, Brian Berry, said: “This is the most exciting, and potentially transformative, announcement on council housing for many years.”
“Indeed, the only times the UK has built sufficient numbers of homes overall is when we’ve had a thriving council house building programme.”
Once implemented, local authorities will have more freedom to lead the way in building more homes.
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