York Conservatives welcome lifting of borrowing restrictions on council house builds

The City of York Council Conservative Group has welcomed the Government’s announcement that it is removing the Housing Revenue Account borrowing cap, meaning that there will be more central government funding available for council house building.

Councils in areas of high affordability pressure have already been invited to bid for a share of £1 billion extra borrowing to build much needed homes.

Conservative housing spokesperson Cllr Helen Douglas said: “Removing this cap will help both to diversify the house building market and also to help councils to take on projects and sites that private developers would consider too small. This is what our Conservative-led administration is already progressing on a number of York’s council-owned sites, where pocket-sized developments will be able to deliver up to 550 new homes, initiating the largest council house build in the city for a generation.

“Whilst in York we’re already ahead of the game, we will be consulting with our officers on what else this might allow us to do in York, but generally it’s a positive step by the Government and yet more evidence that Conservatives are serious about providing more houses, and more housing options, for all residents.”