Burnham and Bournemouth.
If Burnham become Prime Minister BCP council won't get a blank cheque to go and build council houses.
But they will get something like a reformed public works loan and low interest rates ring fenced to council house building. This is likely to be combined with the planning powers to build on council owned land like the old power staion or the old winter gardens.
Building council houses will in due course be an income stream for the council that will help in multiple ways.
Land owners can hang on to land or make outlandish claims about the value of vacant land. The Starmer government was making changes to allow councils to purchase land at realistic values and not at inflated claims.
In essence and it really is this simple, the government borrows money to build council houses at low (sovereign) interest. Then lend councils money at slightly higher but still low interest. Councils then buy the land and build the houses. In due course the loans are paid off and the council gets an income stream that goes to lowering council tax and/or paying towards other essential services.
Problem is Rachel Reeves said borrowing to build council houses isn't borrowing to invest. Well the nect chancellor should have more sense.
And Burnham is right. A decent house, a good place to live gives a family the security to build a good life on.
With council housing every body throughout the whole process wins.
The 'market' can look after the so called affordable homes, councils can look after families who have low incomes and insecure jobs where they can't get mortgages.
The one drawback. Building council houses could reduce private sector demand as people who could manage a mortgage prefer to rent from the council. This could reduce house prices and millions depend on the equity value in their homes.
But during the periods of major council house building such as after WW2 the private housing market was bouyant with a high demand for houses in both sectors.
Two of the biggest financial burdens on BCP Council is SEND and adult social care. The council are having to borrow £96 million to cover SEND. Adult social care takes up £165 million of the budget. It would take a while but income from council house rents could go towards and even cover these cost burdens.
(accuracy checked by and image generated with the help of google gemini)
So lets get building...
(accuracy of the post checked by and image created with help from google gemini)
