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Council commits to building council housing in Nottingham (NCH release)

Ambitious plans to build 'hundreds' of new council homes across Nottingham over the next six years are being drawn up.

The scheme would be the biggest of its kind since the 1970s and would be complete by 2017.

But it depends on the outcome of Government plans for changing how council housing is financed – and would require homes in poor condition to be demolished.

City Council leader Jon Collins said:

The city desperately needs new social housing. Nottingham City Homes built more than 30 last year – to a very high standard and very popular with their new tenants. But we need many more.

I've asked Nottingham City Homes to identify sites across the city where we could build homes, and report back by November.

The plans rest on Government plans to reorganise housing finance nationally – with councils moving to a 'self-financing' system. This would effectively end nationally funding improvement schemes – such as the current 'Secure Warm Modern' programme, and earlier projects to improve Victoria Centre and the Woodlands in Radford.

Nottingham City Homes Chief Executive Chris Langstaff said:

The Government is changing how council housing is financed. At the moment, all the rent collected in Nottingham is sent to Whitehall, with a proportion paid back to us via a complicated formula.

The proposed new system means we will keep all of our rent – but we'll get no more help from the Government. That means we now have to make some tough decisions about our current housing stock.

Tower blocks put up in the 1960s are now becoming increasingly expensive to maintain. More importantly, they will need massive investment to be fit for another 30 years – and there is going to be no Government money to do it.

So we need to plan for the long term. Does it make financial sense to keep doing running repairs – or is it better to take old, sometimes unloved, blocks down and build something fit for the future?

These are the questions we are now asking our tenants and leaseholders. Nothing will happen overnight, and no-one will be left homeless.

The Government has asked all councils to submit its plans by October 10, before announcing a 'settlement' for Nottingham in November.

Jon Collins added:

The Government's recent decision to cancel our £200m scheme to improve the Meadows has also hit us hard. There are blocks in the area that we must tackle because they are in poor condition and unpopular.

The good news there is that Nottingham City Homes could now carry out Secure Warm Modern improvements to our properties – but this means money being diverted from other parts of the city to do it.

I've every confidence in Nottingham City Homes to build new council homes. Last year NCH built more than 30 – the first new council homes in Nottingham for 25 years – but we want many more than that.

This is a chance for us to reshape council housing in Nottingham. I'm not happy at how the Government has given us very little time to do this exercise – but we must use it as a positive opportunity to improve our communities and give people quality homes.

Consultation events are now taking place across Nottingham. The city council's Executive Board will review options in mid-September, before a submission to the Department for Communities and Local Government in early October.

(Friday 12th August 2011 09:00:00 GMT)

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