A recent study shows many councils are struggling to maintain housing budgets, risking future projects and repairs
Southwark: A new survey has revealed that many councils are in a tough spot when it comes to managing their housing budgets. It turns out that two-thirds of the councils surveyed are worried they won’t be able to keep things balanced financially by the end of the decade.
The research, which was commissioned by Southwark Council, found that a whopping 93% of councils are feeling the pinch. Many are already making tough choices, like dipping into emergency funds just to stay afloat.
In fact, 61% of councils have had to cancel or delay building new homes, and over a third are cutting back on repairs for existing council properties. It’s a real mess, with 71% expecting to pause or abandon current housing projects.
Some councils are even considering selling off homes to regain financial stability. With 67% of them saying they might not be able to balance their budgets by 2029, it’s clear that something needs to change.
Labour has promised to build 1.5 million new homes, and Deputy Prime Minister Angela Rayner is all in on this mission. She’s shared her personal connection to council housing, emphasizing its importance.
Despite some recent government moves to help, like reducing Right to Buy discounts, the survey highlights a growing crisis. Councils are facing capped incomes and rising costs, making it hard to keep up.
Kieron Williams, Southwark’s Labour leader, stressed that without more support, councils won’t be able to build the homes we need. Last year, 100 councils, including Southwark, asked for £644 million from the government to stabilize their housing finances.
They pointed out that the current financial model for council housing is broken, with a projected £2.2 billion shortfall by 2028. They’re calling for a sustainable deal to fix this issue.
Williams also mentioned that the government’s quick action on some recommendations gives hope for the future of council housing. However, many councils are still pausing their building programs due to financial strain.
A spokesperson from the Ministry of Housing said the upcoming housing strategy is a chance to give councils the confidence to invest in homes. They’re committed to delivering 1.5 million homes and addressing homelessness.
Despite the challenges, the government is working on reforms to help councils build more social homes. The aim is to increase affordable housing significantly, which is much needed given the rising demand.
