Council promises to invest in social housing despite government bailout

A council has promised to investment millions of pounds to improve its social housing stock, weeks after asking the government for an unprecedented bailout. 

Croydon council said funding comes after its Housing Revenue Account (HRA) business plan was approved by cabinet on February 12.

The plan, which was based on surveys of 67 per cent of council-owned homes, sets out how the local authority will increase budgets on maintenance, with a targeted investment of £820million over a 30-year period. 

For 2025-26, Croydon also proposes raising its repairs budget to £10.5million to address backlogs, tackle damp and mould and improve living conditions.

A further £30million has been earmarked to expand Croydon’s social housing stock, whilst £166million will be invested into the Regina Road redevelopment, which will deliver 225 new affordable homes. This is supported by £54million government funding through the Greater London Authority (GLA).

The council estimates that this plan will save £1million annually, with the potential for a further £78million to be saved through cost avoidance over the project.

Jason Perry, Executive Mayor of Croydon, said: “Over the past year, we have made significant progress in transforming Croydon’s housing service. Unlike the under investment in the past we are now in a stronger position to deliver on my commitment to provide high-quality, safe, and sustainable homes for our residents.”

The new investment plans come just weeks after Croydon council announced it has overspent by £35million this year and is now seeking an unprecedented £136million bailout from the Government.

With a projected shortfall of £98million from its budget for the forthcoming financial year, the council is asking for enough money to cover the shortfall on top of the standard £38million it gets to help pay off its historic debt.

Pictured top: Jason Perry, Executive Mayor of Croydon (Picture: Darren Pepe)