There is general agreement that England is facing a ‘housing crisis’ and that a lack of social and affordable housing is a significant part of this. There is therefore an appetite in many local authorities to build new council homes as part of their response to the crisis. Indeed, many local authorities have already embarked on new build programmes.

However, despite the introduction of self-financing in 2012 and government support for new build, councils still operate with financial and other constraints including the ‘borrowing cap’. Furthermore, recent policy announcements regarding sale of high value council homes and rent reductions will reduce the capacity of local authorities to build new homes.

This book considers the financial implications for local authorities of building new council homes, the implications of government policies and options for building new homes. It addresses the following questions:

·      What is the context in which councils are developing new council housing?

·      How can new council housing be financed?

·      The costs and benefits of a new build scheme. How to appraise a new build project?

·      What delivery vehicles can be used? What opportunities may exist in the future?