Shelter’s updated response to the scrapping of council borrowing caps.

Shelter’s updated response to the scrapping of council borrowing caps.

This represents a major reform that will allow councils to deliver desperately needed affordable homes  – and allow them onto the playing field as significant housebuilders. Previously there was a prohibitive cap on how much councils could borrow against their assets to fund new housing developments. Today the Prime Minister announced this will be scrapped altogether, allowing councils to borrow and build themselves.

Polly Neate, chief executive at Shelter, said: “The prime minister’s plan to scrap the council borrowing cap is a major reform that shows real intent to back social house-building. It’s a big step towards helping to repair the damage done by years of under-investment and will let councils fulfil their rightful role as significant housebuilders.

“Shelter research shows that liberating local authorities from these restrictions could build up to 27,500 new social homes each year. For comparison, only just over 5,000 were built last year in total.

“This welcome move throws down the gauntlet to local authorities to use the extra funds to build many more social homes – no more excuses.”

Source of information from Shelter.

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

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