THE NEED FOR COUNCILS TO RESUME THEIR "HISTORIC ROLE" AS HOUSEBUILDERS
- 28 Jul
Report from the Centre for Economics and Business Research has predicted that "tremors" from the vote to leave the EU would push up the average UK house price from £194,000 in 2016 to £234,000 in 2021.
This report suggests that these tremors will not prevent the average UK home costing about £40,000 more in five years time, the BBC reports.
According to the Local Government Association, the need for councils to be given the chance to resume their "historic role" as housebuilders, was greater following the uncertainty caused by the UK's vote to leave the EU.
- First-time buyer numbers in England have fallen by a third in a decade
- There is a fall in home ownership among the young
- Rising rental costs has led to some calls for councils to increase the supply of homes with a new building programme and
- An estimated four million people of working age in England would be in need of affordable housing by 2024
Peter Box, LGA housing spokesman, said:
"Bold new action is needed to solve our housing crisis following the vote to leave the European Union. A renaissance in house building by councils must be at the heart of this.
"The private sector clearly has an important role to play but the reality is that it cannot build the homes we need on its own, and will likely be further restricted by uncertainties in the months and years ahead."
The LGA is calling for the government to allow councils to do the following:
- "Borrow to invest in housing
- Keep all the money received from the sale of homes through the Right to Buy scheme and
- To use this and other funding to build through spin-off housing companies."
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