A cross-party coalition of over 100 councils is calling for reforms to what it calls “unsustainable” discounts on Right To Buy along with other housing reforms. 

Led by Labour-controlled Southwark Council the coalition has provided what it has termed ‘five solutions’ to help build social housing and reduce the reliance on the private rental sector and reverse the growth in homelessness. 

A new report from the coalitions sets out a roadmap to renew the UK’s council housing over the next decade and critical policy changes for the realisation of the new government’s social housing ambitions. 

It explains how an unsustainable financial model and erratic national policy changes have squeezed council’s housing budgets and sent costs soaring. New analysis from Savills shows they will face a £2.2bn ‘black hole’ by 2028. 

They warn that unless more is done soon, most council landlords will struggle to maintain their existing homes adequately or meet the huge new demands to improve them, let alone build new homes for social rent. Across the country development projects are being cancelled and delayed, with huge implications for the local construction sector, jobs and housing market.

Rather than increasing supply, the reality is that some councils will have no option but to sell more of their existing stock to finance investment in an ever-shrinking portfolio of council homes.

The five solutions are:

• A new funding model, including an urgent £644m one-off rescue injection, and long-term, certain social rent and debt agreements;

• Reforms to ‘unsustainable’ Right to Buy policies, including phasing out discounts; 

• Removing red tape on existing funding;

• A new, long-term Green & Decent Homes Programme; and 

• Urgent action to restart stalled building projects, avoiding the loss of construction sector capacity and a market downturn.

A spokesperson for Southwark council says: “This unprecedented coalition of councils – representing every corner of England – is united in our determination to ensure our residents have decent and affordable homes. For families across our country their council home is a foundation – giving them the security needed to put down roots and flourish. However, the reality is that our national council housing finances are on the brink.

“Our new government has committed to delivering the biggest increase to affordable and social housing in a generation. The Deputy Prime Minister’s recent announcements demonstrate that they know the critical role councils will play in reaching this ambition.

“Our five solutions offer the new government an opportunity to turn this around – lifting the council homes we have up to modern, safe, healthy and green standards, and delivering the thousands more council homes that our country urgently needs. By investing in them together, we can transform lives for the better for generations to come.”