PM announces plans to scrap LA borrowing cap

The PM has announced plans to scrap the LA borrowing cap during her speech at the Conservative Party Conference yesterday. This comes only a week after a pledge of £2bn additional funding for HA’s to support the delivery of new homes.

This will remove the current cap on how much LA’s can borrow against their Housing Revenue Account assets to fund new developments and is further evidence that the government is listening to the sector and the need to deliver more affordable homes.

ARK has long campaigned that Local Authorities are well placed to deliver new homes, and during her speech the PM highlighted the previous contributions LA’s have made to housing building, stating “the last time Britain was building enough homes – half a century ago – local councils made a big contribution”.

We welcome this announcement and strongly believe that Local Authorities are well placed to build homes, at scale again, but only if they can put in place the right cultures, people, skills, tools and partnerships. Our Director, Chris Seeley has previously written an article on the subject of council house building, which highlights what councils need in order to build again in 21st century market conditions.

Here at ARK, we have a team of vastly experienced development professionals well placed to support Local Authorities in the delivery of the affordable homes we so desperately need.

If you would like to find out more about how we can help you, contact us now at ark@arkconsultancy.co.uk