Councils to keep 'right to buy' funds
26 March 2010
Councils will be allowed to keep revenue from the sale of council homes under new local authority financing rules, Housing Minister John Healey has announced.
Instead of income from council housing going into a central pot, not all of which gets back to local authorities, the councils will be able to hold onto funds from sales of homes.
This could lead to up to 10,000 extra council houses being built every year and mean 10 per cent more money a year for Britain's 1.8 million remaining council homes, which are occupied by 4 million people, the Government said yesterday.
Shelter chief executive Campbell Robb has welcomed the move:
'Shelter’s recent Housing League Tables highlighted that almost all councils across England are struggling to deliver enough affordable homes to meet local need.' he said.
'We wholeheartedly welcome any steps which make it easier for councils to build urgently needed affordable homes.
'However, we continue to look to all political parties to make solving our housing crisis a top election priority.'
