Almost half of England’s local authorities have set up a privately-owned housing development company or are considering doing so, according to new research.
In the face of cuts to government grants to local authorities, councils are seeking new revenue generation methods, including wholly-owned housing companies, according to 3Fox International.
Some 12% of English local authorities have set up a housing company, according to the firm’s survey, with 34% considering doing so.
Ealing borough executive director for regeneration and housing Pat Hayes said: “I am surprised so many authorities have set up housing companies or are thinking about it. We set up ours to address a specific housing issue; namely, the lack of good-quality, institutionally-funded, market-price, rental accommodation. I am slightly concerned that some authorities may see housing companies simply as a way of generating a financial surplus, rather than a means of intervening in the housing market to catalyse the delivery of intermediate price accommodation.”
