New research by the LGA suggests that the rollout of five-year local housing deals by 2025 would lead to 200,000 additional social homes being built over 30 years.
The report, from Pragmatix, finds that a system that allows local management and greater consistency of housing funding is key to delivering the social homes the country needs, and could lead to a 21 per cent increase in social housebuilding.
The research suggests that moving towards a single, long-term fund could help improve the delivery of housing by prioritising a strategic approach over short-term thinking and avoiding boom-and-bust cycles of housebuilding.
Delivery of more social rented homes would also result in benefits such as reduced government spending, tax benefits from construction, and lower spending on temporary accommodation provision.
The report estimates that a programme of consecutive, minimum five-year housing deals would deliver net socioeconomic benefits worth £31 billion in today’s prices over 30 years.
Cllr Claire Holland, LGA Housing Spokesperson, said: “Over the past 30 years, growth in the housing stock has stagnated and the number of housing completions is failing to keep up with demand. The only way to solve this country’s housing crisis is by giving councils the powers and resources to build more of the genuinely affordable homes our communities desperately need.
“Councils know their areas best and need the autonomy and funding certainty to be able to deliver long-term plans for housebuilding in their local areas. Five-year local housing deals are crucial to give local areas the powers to build more affordable, good-quality homes at scale, quickly, where they are needed.”