Commenting on the Autumn Statement, London Councils' Executive member for housing, Mayor Sir Steve Bullock, said:

“By 2021, over 800,000 new homes will need to be built in London, but the government’s latest attempt to address this crisis through increasing council borrowing capacity does not go far enough and has too many strings attached.

“In order to qualify for extra borrowing capacity, councils will have to sell off high value vacant housing stock. This unfairly prejudices London, which has both the most acute housing need and the highest value stock in the country.

“London Councils will continue to call for the complete removal of the artificial housing borrowing cap, among a raft of other measures, so that boroughs can properly address London’s housing crisis.”

London Councils analysis suggests that 526,000 new homes will need to be built in London up to 2021, to match London’s growing population. In addition, a further 283,000 homes will be needed to meet the unmet backlog of housing. However, only 250,000 homes will actually be built according to current projections, leaving a deficit of 559,000 homes in London by 2021.

It is felt that the proposals to lift the borrowing cap by £150 million in both 2015/16 and 2016/17 do not go far enough and come with a number of conditions, including the need to sell off high value vacant housing stock. This will unfairly penalise London boroughs, which have both the most acute housing need and the highest value stock in the country.
London Councils will continue to call for the complete removal of the artificial housing borrowing cap, among a raft of other measures, so that boroughs can properly address London’s housing crisis.

 

December 11, 2013