Brown to pledge £72billion for more council homes

Author: Daily Mirror - Jun 16, 2009

Posted in: Planning, Housing and Economic Development / Reform of the social housing system / Local Government News

Gordon Brown is poised to free-up billions of pounds to tackle Britain's council house crisis.

Just 400 council homes were built in 2007, despite a waiting list which may grow to five million by 2011.

Now the PM is considering letting councils keep profits from rents and right-to-buy schemes instead of passing them to the Treasury. This could unlock £72billion to build 300,000 new homes over 10 years.

Margaret Eaton, of the Local Government Association (LGA), said: "Allowing councils to keep the rent they collect and the proceeds from sales would be a huge boost to the economy.

"Thousands of homes could be built, improved or made more energy efficient if Government stopped taking this money."

Mr Brown is expected to announce a review of council house funding within 10 days. Currently the money raised in one part of the country can pay for repairs and renovations in other areas.

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