MHCLG launch a £1 billion fund to finance council house building

17th July 2018

Opportunity for local authorities in areas of high affordability pressure to bid for additional  borrowing to build new council housing.

MHCLG have launched a £1 billion fund for additional Housing Revenue Account borrowing headroom to finance council house building.  Many councils have supported the case to Government for more flexibilities to support local authority house building. This scheme seeks to increase the supply of new council and affordable homes delivered by local authorities, and assist councils to build to replace homes sold under the Right to Buy scheme.

Local authorities in areas of high affordability pressure can bid for additional borrowing to build social rented housing, affordable rented housing, sheltered housing or supported housing. High affordability pressure areas are defined as those where there is a difference of £50, or more, per week between average social and private rents at the local authority level.

Eligibility: A list of local authorities in high affordability pressure areas in line with this metric is at Annex A of the prospectus: https://www.gov.uk/government/publications/additional-housing-revenue-account-borrowing-programme-prospectus Local authorities that are not included at Annex A will not be eligible to bid.

The deadline for submissions is 7 September 2018.

MHCLG officials are keen to speak with councils that might be interested in the programme, in order to encourage further (and ambitious) bidding from outside London. For further information please contact HRABorrowing@communities.gsi.gov.uk

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