Demand for council homes in Sheffield increases - but a report warns there is no cash to build them

‘We cannot simply carry on delivering services in the same way as we have done previously’ – that is the stark warning about council housing in Sheffield as the authority grapples with a series of challenges.
By Lucy Ashton, Local Democracy Reporter
Published 9th Jan 2020, 13:08 BST
Updated 9th Jan 2020, 16:57 BST
A report has warned that the council is struggling to find the resources to build new council homes, despite a rising demandA report has warned that the council is struggling to find the resources to build new council homes, despite a rising demand
A report has warned that the council is struggling to find the resources to build new council homes, despite a rising demand

A report says market conditions and government policies have ‘stifled the delivery’ of affordable council housing and the number of new homes hasn’t matched increasing demand.

Since 1980, Sheffield has lost well over 32,000 council homes, particularly houses, due to Right to Buy.

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It slashed rental income for the council but in a double whammy punch, the Government also imposed rent reductions so there was even less money to invest.

Louise Cassin, housing business plan officer, says in the report: “Each year it becomes harder to make the savings necessary to avoid this having an impact on our ability to invest in council housing stock, meet housing demand and manage the estates.

“All of these complex inter-relationships mean that forecasting long term demand for services and financial viability is difficult and subject to change.

“Demand for services is increasing and while the council does have more freedom to borrow, this does have to be affordable and prudent.

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“It also means that, on occasions, there will be choices to make in order to balance resources against demands.”

Many people’s incomes ‘fall well short of the money needed’ to afford rented homes and there is a lack of choice and variety of properties.

There are now more flats than houses but this means more maintenance costs for the council. And post-Grenfell, there may be further costs if there is new legislation with tower blocks.

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Ms Cassin added: “Our investment will need to be carefully planned if we are to use the limited resources available to us to meet these and other priorities.”

One key aim is to make sure existing stock continues to be well maintained and many estates need investment.

The Government has lifted a debt cap which means the council has more freedom and flexibility to borrow money. The ambition is 3,100 over the next 10 years in Sheffield.

Related topics:SheffieldGovernmentPolitics