Progress and current trends in local authority housing provision

This paper sets out the motivations, methods and means through which local UK authorities are engaging in the direct provision of housing without any encouragement from the Government. The findings set out here are derived from a research study undertaken in 2017 which reviewed the direct housing provision activities of all local authorities in England using a range of complementary research methods. The research found that local authorities are primarily motivated by the general need to provide housing across all tenures, to respond to the pressures created by homelessness and to generate rental income to replace the loss of the Revenue Support Grant from central government in 2020. The research showed that local authorities are using a range of methods including wholly owned companies, joint ventures and direct purchase of dwellings on the open market. The study also showed secondary motivations and actions to deal with stalled sites and unimplemented planning consents for housing. The study demonstrates a high level of local authority activity which may provide a considerable contribution to local housing provision in the future.