A new independent report has claimed that Sadiq Khan’s Council Housing plan will “slash” the temporary accommodation crisis in London, but critics of the plan have questioned its effectiveness.
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The Mayor’s Council Homes Acquisition Programme (CHAP), launched in November, planned to purchase 10,000 new council homes from the private market to help with increasing council housing shortfall.
By the end of 2023 around 60,000 households in the capital were living in temporary accommodation, an increase from 45,170 the year before. Last month the equivalent of at least one child in every classroom in the capital was homeless, according to London Councils.
This crisis in temporary accommodation has been critical for Ealing council, who are spending 50,000 pounds a year for one hotel room.
With an overall hotel overspend of over 5 million pounds a year, the situation is an “absolute disaster” according to Ealing Labour Councillor Shital Manro.
The Ealing Liberal Democrat Councillor Gary Malcolm welcomed any increase in council housing but criticised the Mayor’s effectiveness. He said:
“There is a real need for Councils and the Mayor across London to create more temporary housing so if the Mayoral plan works out then that will be a positive – but often plans like these are not organised efficiently.”
The Mayor of London did not respond directly to the comment. But said: “This programme works, and the Government should back me to deliver it in full.
“This scheme will enable us to work with local authorities and the Government to deliver the investment that is needed to get housebuilding in the capital back on track and ease cost-of-living pressures on households.”
A spokesperson for the Mayor said that: “London has entered a golden era of council housebuilding”.
Mayor of London Sadiq Khan said he put “council housing at the heart” of his plan. CREDIT:AP
CHAP has ensured the Mayor gained £4bn from the Government to deliver affordable homes, between 2021 and 2026.
But critics of the Mayor point to data from February suggesting that only 658 homes were started under the programme between April and December last year.
The Mayor’s spokesperson suggested this week that housing experts were warning “of a major decline in housebuilding across the country, driven by high-interest rates, building cost inflation and a lack of leadership from the Government”
But the Mayor has “called for additional emergency funding of at least £2.2 billion from the Government to boost London’s affordable housing delivery and an increase in affordable housing investment to an average of £4.9bn.”
The New Economic Foundation explained that these “exorbitant costs” of Social Housing were pushing “many local authorities to the brink of bankruptcy”.
The Think Tank suggested the Mayor’s scheme would reduce London councils’ temporary accommodation costs by £1.5bn, trim housing benefit subsidies by £340m and generate an additional £440m in savings.
The other mayoral candidates have not responded to requests for comment.
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HeadlineCouncillor questions the ‘efficiency’ of London Mayor’s council housing plan
Short HeadlineCouncillor questions the 'efficiency' of London Mayor's housing plan
StandfirstA new report suggests Sadiq Khan's council housing plans will save £1.5bn, but critics are sceptical.
A new independent report has claimed that Sadiq Khan’s Council Housing plan will “slash” the temporary accommodation crisis in London, but critics of the plan have questioned its effectiveness.
Listen to this article powered by AI
The Mayor’s Council Homes Acquisition Programme (CHAP), launched in November, planned to purchase 10,000 new council homes from the private market to help with increasing council housing shortfall.
By the end of 2023 around 60,000 households in the capital were living in temporary accommodation, an increase from 45,170 the year before. Last month the equivalent of at least one child in every classroom in the capital was homeless, according to London Councils.
This crisis in temporary accommodation has been critical for Ealing council, who are spending 50,000 pounds a year for one hotel room.
With an overall hotel overspend of over 5 million pounds a year, the situation is an “absolute disaster” according to Ealing Labour Councillor Shital Manro.
The Ealing Liberal Democrat Councillor Gary Malcolm welcomed any increase in council housing but criticised the Mayor’s effectiveness. He said:
“There is a real need for Councils and the Mayor across London to create more temporary housing so if the Mayoral plan works out then that will be a positive – but often plans like these are not organised efficiently.”
The Mayor of London did not respond directly to the comment. But said: “This programme works, and the Government should back me to deliver it in full.
“This scheme will enable us to work with local authorities and the Government to deliver the investment that is needed to get housebuilding in the capital back on track and ease cost-of-living pressures on households.”
A spokesperson for the Mayor said that: “London has entered a golden era of council housebuilding”.
Mayor of London Sadiq Khan said he put “council housing at the heart” of his plan. CREDIT:AP
CHAP has ensured the Mayor gained £4bn from the Government to deliver affordable homes, between 2021 and 2026.
But critics of the Mayor point to data from February suggesting that only 658 homes were started under the programme between April and December last year.
The Mayor’s spokesperson suggested this week that housing experts were warning “of a major decline in housebuilding across the country, driven by high-interest rates, building cost inflation and a lack of leadership from the Government”
But the Mayor has “called for additional emergency funding of at least £2.2 billion from the Government to boost London’s affordable housing delivery and an increase in affordable housing investment to an average of £4.9bn.”
The New Economic Foundation explained that these “exorbitant costs” of Social Housing were pushing “many local authorities to the brink of bankruptcy”.
The Think Tank suggested the Mayor’s scheme would reduce London councils’ temporary accommodation costs by £1.5bn, trim housing benefit subsidies by £340m and generate an additional £440m in savings.
The other mayoral candidates have not responded to requests for comment.
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