Boroughs plan to cut spending on council housing by 264m

London boroughs are required to cut council housing spending by £264 million over the next three years, as costs for managing housing rise while incomes do not keep pace. This situation stems from below-inflation rent increases imposed by the government. The boroughs own about 390,000 social homes, housing over 10% of London’s population, and face unique maintenance challenges due to high-density structures. The cuts aim to prevent Housing Revenue Accounts from depleting, although five boroughs may exhaust their reserves by 2027/28. Borough leaders stress the need for government policy shifts to stabilize finances for affordable housing.

We have reached crunch point for London's council housing finances... many will need to make deep cutbacks. We are dealing with fast-rising costs but also the legacy of years of Government underinvestment.

Boroughs play an essential role in modernising older properties and building the new affordable homes Londoners are crying out for... it requires national policy decisions that give us secure and sustainable finances.

Read at www.standard.co.uk