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Major summit to discuss way forward from brink of collapse for council housing

Today, (6th March), Housing & Planning Minister Matthew Pennycook MP will speak at a major summit at Cutler’s Hall, Sheffield, to share the government's ideas on how local and national government can work together to deliver the government's mission of 1.5 million homes.
Housing construction

This event, organised by Sheffield City Council and Southwark Council, will bring together over 200 council leaders, directors and housing experts to discuss the action needed to secure the future of England’s council housing.

Last year, over 100 cross-party councils came together to publish the landmark ‘Securing the Future of Council Housing’ report, calling for urgent action to bring council housing budgets back from the brink and enable them to deliver new and better homes.

The last time England was building 300,000 homes a year in England, around half were delivered by councils. Councils will therefore play a critical role in meeting the government’s ambitions. However, council finances are currently at breaking point.

Since publication of their report, the government has made some changes in line with their recommendations – such as reducing the Right to Buy discounts and proposing a new rent settlement.

However, a survey from Southwark Council earlier this year found two thirds of council housing budgets on the brink of collapse and councils across the country delaying critical maintenance, cancelling new build projects and even selling off existing housing stock.

Now these councils are gathering at this summit to explore how they can work together to deliver for residents and set out what they need from the government’s upcoming Comprehensive Spending Review and long-term housing strategy.

They are calling for: 

  1. A new, sustainable Housing Revenue Agreement – a reset to our broken council housing financing deal with government.
  2. A Green & Decent Homes Programme – a new, bold national programme for all social homes to reach one clear standard, backed by sufficient funding.
  3. Funding for new council homes – a sufficient and flexible capital funding programme that prioritises council homes. 

Councillor Kieron Williams, Leader of Southwark Council, said: “Council homes are at the heart of our society, they offer the security people need to live healthy, safe and successful lives and they are the answer to solving the housing crisis.  

“As councils are forced to spend millions on temporary accommodation every day, it is clear that our communities desperately need more of the truly affordable and secure homes that council housing offers. Here in Southwark, we have been leading the way in building new council homes, starting our 3,000th this year. But like so many councils, our programme has been forced to slow. 

“Cuts to our income and soaring costs have undermined our agreement with government and left a huge gap in our housing budgets. However, councils will play a critical role in reaching the government’s ambition for 1.5 million new homes. I was blown away that over 100 councils from across England joined us to publish our plan to save council housing, and I am delighted that so many are here in Sheffield as we progress our plans to deliver new and better council homes for our residents.” 

Councillor Tom Hunt, Leader of Sheffield City Council, said: “Council homes transform lives. We are proud to host this important summit in Sheffield which will see councils coming together to continue our work to secure the future of council housing in England. 

“The government has taken extremely significant, positive action to support councils to improve the quantity and quality of council housing. Councils have a key role to play in tackling the housing crisis and we look forward to continuing our positive work together with the government to ensure everyone has a safe, secure and good quality home that they are proud of.” 

Date
6 March 2025