South Lakeland Council is planning to lend £6m to housing associations in order to take on a shortage of rental homes first hand, with the council wanting to build 1000 new properties by 2025.
The reasoning behind the figure is due to the fact the council want to kick-start building in the area by offering low-interest finance, which is they’re hoping will prove to be the carrot in front of the stick.
Research that was carried out recently on behalf of the council found out that 320 homes need to be built in South Lakeland every single year in order to meet demand.
Speaking on the matter, Jonathan Brook – a councillor and a portfolio holder for housing and innovation – explained the benefits behind the loan system, as it may entice housing associations to get to work as such.
“The loan facility would allow housing associations to access low interest rate finance from the council, removing an obstacle which may be preventing them from developing more affordable housing in the area,” Brook said.
“The council would receive a financial return from the repayment of the loans and also be fulfilling our pledge to work with partners to deliver the new affordable homes which our communities need.”