New proposals to amend local authority regulations on capital receipts could release up to £70 million each year for the provision of affordable housing.
A consultation published yesterday on regulations, allowing councils greater freedom and flexibility to manage their housing assets, is proposing to enable them to replace inefficient housing with modern dwellings better suited to the needs of today's tenants.
Housing Minister Jeff Rooker says: “We expect local authorities to warmly welcome the new flexibility afforded them. This will encourage authorities to dispose of vacant land, surplus or inefficient properties, as well as encouraging them to provide more affordable housing.”
Local authorities will have up to 100% of the capital receipt to spend, as long as it is spent on affordable housing. The consultation will be carried out with local authorities and housing organisations as well as members of the public.