Janice Morphet
The Secretary of State for the Ministry of Housing, Communities and Local Government frequently speaks to the media about the ways in which local authorities are providing more homes. She typically discusses two ways that she expects them to deliver – through the reform of the planning system and providing more social rent homes using Government Funding[1]. All councils use the planning system to negotiate affordable housing secured through planning agreements[2] and about half of local authorities retain and develop social rent homes using government subsidy. However, over five waves of research since 2017, we have found that, in 2026[3], 95% of local authorities are engaged in housing delivery, although much of this is not recognised by government.
How are local authorities increasing the number of homes they need in their areas? We look at this in detail in our research. Each round in 2017, 2019, 2021, 2023 and 2026 has used the same methods to find out what councils are doing. The first stage is to examine each council’s documents, reports, websites and records to provide detailed information about their levels of activity. These findings are published in a free report which is available now for 2026. Where the council has its own company to develop homes alongside other methods, like WV Living in Wolverhampton or Goram Homes in Bristol this is noted and weblinks provided. Some councils also have active Arm’s Length Management Companies (ALMOs), where the council retains ownership of its stock but some or all aspects of its housing management and delivery are undertaken independently. These ALMOs are also registered as housing associations and have separate assured access to government funding. While the number of ALMOs has been reducing, some that remain are very active including Cornwall, Derby City and the LB of Sutton.
Other councils enter into partnerships with private developers or housing associations. Some local authorities may enter into multiple arrangements of this type such as Oxford City Council, where the agreement will vary on each site. Others like Gateshead and Cambridge have developer agreements for several housing sites over a period. In some locations, such as LB Ealing, local authority estate regeneration is undertaken with both housing developers and housing associations. These relationships bring funding, expertise for councils and less risk for developers who will usually also be providing some market homes as part of the arrangements. However, when completed, despite local authorities often providing land, finance, advocacy and guarantees to third party funders, the homes are attributed to the developer and/or the housing association and not to the council.
Since 2022, housing construction costs have increased while government subsidies and restrictions on the use of receipts for properties sold under right to buy have limited local authority investment in housing delivery. Yet 82% of councils increased affordable housing in their areas. At the same time, homelessness has increased placing strain on wider council budgets. Local authorities have been looking for other solutions to provide more homes. In the 2026 survey we found 57% councils are acquiring homes to add to their stock. While these homes are not net additions, they can be used for different tenures and to relieve homelessness, overcrowding and multiple occupation. The funding for acquisitions has come from an Government easing of the use of RTB receipts such as Bassetlaw and through a Council’s General Fund rather than through the specific housing funding route. Some councils are managing acquisitions through setting a budget, numbers cap or location, others by seeking certain types of homes eg former RTB homes to enable future estate regeneration eg Ipswich or suitable for older people such as Bury. Where councils have been working with developers, they have been able to agree purchases of unsold new homes at different points in their construction – from design stage to completion including Birmingham City Council. Many councils are supporting the development of garden villages and urban extensions to provide additional homes including Sandwell, South Derbyshire and Cheshire East.
Some councils are engaged in a wide variety of activities to deliver homes including Stockport, Sheffield and most London Boroughs where the Mayor of London has the power to provide all with funding for 5-10 year social housing programmes. If the new Prime Minister wants local authorities to deliver more homes, then the expertise and skills built up in London Boroughs to deliver the Mayor’s programme and then applied to wider housing delivery should be available to every other local authority in the country.
Local authorities are providing more homes than popularly acknowledged. They should receive more recognition of what they are achieving and the model of funding for each local authority as available in London demonstrates that this approach has a significant role in expanding housing delivery across all tenures in England.
Janice Morphet is a Visiting Professor at University College London’s Bartlett School of Planning
The full report is here:
[1] Eg BBCR4 Today Programme 19th August 2026
[2] Often known as s106 agreements from role of s106 of the 1990 Town and Country Planning Act in providing the legal means to secure this housing
[3] Local Authority Direct Provision of Housing in England: Round Five Research Report 1 – Local Authority Activity to Directly Support Housing Provision: Desk Survey Report. Janice Morphet and Ben Clifford UCL Bartlett School of Planning
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