Huge London reasonably priced dwelling shake-up will save taxpayers billions, report finds
A London housing shake-up might save councils £1.5billion by letting them purchase reasonably priced properties, economists imagine.
A brand new report revealed right now says Mayor Sadiq Khan’s plan to let native authorities purchase 10,000 reasonably priced properties might save a fortune in non permanent lodging prices. An evaluation by the New Economics Foundation (NEF) mentioned central Government would additionally save round £780million.
Mr Khan launched his Council Homes Acquisition Programme (CHAP) final November aiming to make extra reasonably priced housing out there. Over 20 years, the NEF estimates it might save taxpayers over £2.2billion.
He referred to as on the Government to again the scheme, which might allows councils to purchase properties and convert them into social rented housing or non permanent lodging for the homeless.
The NEF report states: “It is good value for money for taxpayers, easing the rising financial burden homelessness is placing on London’s councils, reducing housing benefit costs for taxpayers and generating significant indirect, additional savings for government.
“It additionally permits native authorities to generate rental revenue, all whereas making certain essentially the most weak tenants obtain higher high quality TA and permitting extra homeless households to maneuver into their very own everlasting properties.”
The NEF estimates the scheme will trim housing benefit subsidies by £340million and generate an additional £440million in savings to central Government.
Mr Khan said: “With homelessness on the rise and housebuilding on the decline nationally, today’s report shows the vital importance of my Council Homes Acquisition Programme to solving the capital’s housing crisis. By converting private housing into 10,000 new council homes, not only will councils save £1.5bn in temporary accommodation costs – significantly easing the constraints on council finances – but central Government spending will also be slashed by a staggering £780m over the next two decades.
“This programme works, and Government ought to again me to ship it in full.” He added that it would help “ship the funding that’s wanted to get housebuilding within the capital again on monitor”.
