Stroud District Council

Stroud District Council is extending and increasing its Council House owned stock

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Stroud District Council has a stock of just over 5,200 properties. As part of the new HRA Self Financing regime the council borrowed £91.7 million and will now keep all future surpluses. Stroud has planned to invest over £23 million over the first five years in catch up repairs to obtain Decent Homes Standard.  Over the same period SDC is looking at utilising the £10 million ‘Headroom' it has to build over 100 new council owned properties to extend and increase its Council House owned stock.

If rules for authorities were closer aligned to those for associations it would provide an environment in which authorities could adopt a more ambitious / aggressive approach to developing new homes to  help stimulate the economy (both nationally and locally), assist those in most need and replace those homes purchased under the Right To Buy programme.  It would also encourage authorities to participate more actively in the new RTB rules as they would not be financially disadvantaged by selling their existing stock.

Stroud would like to retain all capital receipts under the right to buy scheme (to be utilised for new build) and also to be able to borrow through the HRA based on the future rental (50 per cent Loan to Value). 

These changes would put authorities on a par with associations and in Stroud's example would enable it to build an extra 188 properties making a total of 288 properties whilst at the same time giving a definite and positive stimulus to the local and national economy. Based on the above, on a national basis, this could lead to almost a trebling of the new build programmes and create a real stimulus and boost to the economy whilst being financially prudent and providing much needed social housing.

Contact

Contact: Carl Brazier at Stroud: [email protected]