Response to the Prime Minister’s announcement on lifting the council borrowing cap

Today, in her speech to the Conservative Party Conference, the Prime Minister announced that the Government will lift the borrowing cap on councils to help support more housebuilding.

3 October 2018

In response, Ruth Davison, Executive Director of Public Impact at the National Housing Federation, said:

“This is a very welcome decision by the Government. For years, everyone who builds affordable homes – both councils and housing associations – have argued this cap on council borrowing puts the brakes on building more homes.

“We know that we need to build 340,000 homes in England alone every year. Last year, only around 160,000 were built. We are so far off building the number of homes we need that councils and housing associations must be able to do more if we are going to solve the housing crisis.

“Housing associations are already working hard to build the homes that people need – this announcement will allow them to work more effectively in partnership with councils, pooling their resources and maximising their impact.”