|
More council hoses will be built in London following the government's reform of Housing Revenue Accounts, according to a new report.
From April 2012, all 33 London councils will be given full financial control of their housing stock and therefore be able to use rental income and borrow against existing houses to fund council house building and repairs.
A report published by London Councils, the organisation which represents all 33 of the capital's local authorities, forecasts that the move could result in the construction of a large number of council homes.
Sir Steve Bullock, mayor of Lewisham and executive member for housing at London Councils, labelled the reform as the "biggest change in council housing" since the introduction of the Right to Buy scheme.
"For the first time in recent history councils will be able to keep all of the rent they collect and invest it locally to improve housing for their tenants," he said.
"The reform of the Housing Revenue Account is a major opportunity for councils to maintain and expand their housing stock far more effectively for the people they accommodate."
As part of the reforms, London councils will also assume responsibility for the £7.2 billion public housing debt.
|