The Local Government Association (LGA) has published a comprehensive report, "Building a Better Future",  highlighting the critical economic and social advantages of implementing five-year housing funding regimes. This approach is positioned as a transformative solution to the enduring challenges of social housing shortages, overcrowded living conditions, and homelessness across England.

A Call for Consistent Funding

For the past three decades, the growth in housing stock has lagged significantly behind demand. The current fragmented funding landscape, characterised by short-term, competitive funding pots, has led to inefficiencies and volatility in housing construction. The LGA report advocates for a shift to consistent, ring-fenced funding allocated over five-year periods. Such a regime promises to stabilise housing construction efforts, streamline administrative processes, and ultimately deliver more social homes to those in need.

Economic and Social Benefits

The proposed five-year funding regime offers substantial economic and social benefits:

• Increased Housing Supply: The certainty provided by secure, long-term funding is projected to lead to the construction of nearly 200,000 additional social homes over the next 30 years under current funding levels. With increased funding, this number could rise to almost 500,000 homes.
• Financial Gains: The report estimates a net boost to public sector finances amounting to £3.3 billion over 30 years, potentially increasing to £5.6 billion with higher funding levels. These gains stem from reduced expenditures on temporary accommodation and homelessness services, as well as increased tax revenues from heightened construction activity.
• Socioeconomic Impact: The construction of additional social homes is anticipated to generate socioeconomic benefits worth £31 billion, possibly reaching £56.1 billion with enhanced funding. These benefits include job creation, greater community stability, and improved living conditions for residents.

Tailored Local Solutions

One of the report's key recommendations is the devolution of housing funding and decision-making to local authorities. This would allow for more tailored and effective responses to the specific housing needs of different regions. By aligning housing strategies with local development plans and infrastructure projects, councils can ensure more cohesive and sustainable community growth.

In conclusion, LGA's "Building a Better Future" report makes a compelling case for the adoption of five-year housing funding regimes. By providing secure, long-term funding, local authorities can significantly enhance their housing delivery capabilities, resulting in substantial economic, social, and financial benefits. This strategic shift promises to alleviate the housing crisis, improve living conditions, and foster stronger, more resilient communities across England.

For a detailed exploration of the findings and recommendations, please refer to the full report on the LGA website: Building a Better Future Report