Social rent council homes the key to resolving the housing crisis

A survey of councils by Inside Housing to find the biggest 50 council builders shows some telling statistics. 305 councils across England, Wales and Scotland responded to our survey. Between them they completed 10,794 homes in 2023/24. This is a combined total of direct building in the Housing Revenue Account and private council owned companies. The total number of homes completed was down by 10.8% on the previous year. Building by council owned housing companies fell from over 3,000 to just over 1,000.

Inside Housing asks if “the writing is on the wall” for council development companies. Their data suggests that that it might be, or they will play a lesser role that expected. The impetus for setting these companies up was the absence of grant to build council homes, and the hope that they would create revenue for council General Funds to replace disappearing central government grant. If the current government was to increase grant for council to build social rent homes via an HRA, then there would be little or no rationale for such companies. The scale of building by the council owned development companies is puny. Of the top 10, only one built more than 100 homes last year.

Councils building in the HRA build far more social rent homes than either housing associations (only 17.8% of the homes built by the top 50) and council owned companies (only 9.1%). That’s because any borrowing associated with the work is from the Public Works Loans Board, whereas the other two have to borrow at more expensive market rates. However, what stands out like a sore thumb is the fact that only 46% of homes built directly by councils, are social rent. 25% are the (increasingly unaffordable) “affordable rent”, and the rest the more expensive “London Affordable rent” and various forms of ownership.

Of the top ten social rent completions, 6 are Scottish and one Welsh.

These statistics reinforce the case for the campaign by a range of organisations for centrally financed building/acquisition of social rent homes as the key to resolving the housing crisis.

Top 10 biggest landlords, 2023/4

CouncilNo of homesTotal completions
Birmingham City58,372Refused FOI
Leeds City53,402204
Sheffield38,47048
Southwark37,916557
North Lanarkshire36,593335
Fife30,908186
Sandwell28,13915
Bristol City26,76660
South Lanarkshire25,48358
Islington25,35725

Tenure of homes built directly by council

Tenure%
Social rent46.00%
Affordable rent25.00%
Shared ownership6.80%
London Affordable Rent6.80%
Market Sales6.80%
Private rent3.80%
Mid market rent1.20%
Temporary accommodation1.30%
Other low-cost home ownership0.40%
Not disclosed1.90%

Council owned development companies

Tenure%
Market sale35.50%
Affordable rent23.50%
Social rent9.10%
Sub-market rent6.70%
First Homes scheme5.70%
Shared ownership5.60%
London Affordable Rent2.60%
Private rent2.60%
Temporary accommodation2.10%
Rent to Buy1.20%
Not disclosed5.40%

Top 10 completions by council owned housing companies 2023/4

CouncilCompletionsExpected completions next five years
Woking212187
Hertfordshire County75523
Wiltshire7187
Medway70420
Wolverhampton65776
Oxford City64737
West Lancashire50172
Sefton39N/a
Shropshire36697
Stockport Metropolitan36156

Top 10 social rent completions 2023/24

CouncilTotal social rent
Southwark470
Aberdeen City381
North Lanarkshire335
Cardiff241
East Lothian209
Fife186
Midlothian181
Westminster162
Aberdeenshire150
Welwyn Hatfield139

Leave a comment