COUNCIL HOUSING AN ‘OBVIOUS’ SOLUTION - 24/06/08

Ministers must not forget the part councils can play in providing homes to meet the national housing crisis, the Association of Retained Council Housing (ARCH) has said.

ARCH was commenting in response to housing minister Caroline Flint’s speech to the Chartered Institute of Housing conference in Harrogate on 17 th June. The Association welcomed the Government’s commitment to addressing the national housing shortage and measures to support first time buyers in the face of increasing affordability constraints.

But ARCH pointed out that council provision of housing is an ‘obvious answer’ to the crisis that is being overlooked.

Brain Reilly, deputy director of housing at the London Borough of Wandsworth and member of the ARCH executive, said: ‘If the Government is committed to tackling the shortage of affordable homes, an obvious answer is direct funding for local authorities, who are best placed to deliver them.’

ARCH represents councils whose tenants have voted for their council to be their landlord and is campaigning for a fairer housing finance system. It argues that the current regime means many councils are unable to plan for long term investment and are in “negative subsidy” – which means tenants’ rents being paid back to central government. ARCH also points out that the system does not allow councils the same ability to borrow against assets as other social landlords.

ARCH is contributing to the Housing Revenue Account and Housing Subsidy Review being conducted by the Departments for Communities and Local Government and HM Treasury.

FOR FURTHER INFORMATION CONTACT: ARCH’s secretary, John Bibby, director of housing and community services, at Lincoln City Council, email: arch@lincoln.gov.uk