The cap on the amount local authorities can borrow to build council housing will be scrapped, Theresa May announced.
Councils’ borrowing against their housing stock was capped as part of an agreement struck in 2012 and its abolition will allow them to take on between £10bn and £15bn more debt to build up to 100,000 more homes, according to research by Savills, the estate agent. Councils have not been significant housebuilders since the 1980s.
The prime minister said: “More new homes were added to our stock last year than in all but one of the last 30 years. But we need to do better still. The last time Britain was building enough homes — half a century ago — local councils made a big contribution.”
