New council homes could be built

A pledge from the Government has heralded the "return of the council house" as ministers published plans to make it easier for local authorities to build their own housing stock once again.

And Oxford City Council, which still owns and manages 8,000 houses and flats, welcomed the news.

Its executive member for housing, Patrick Murray, said: "The ability to build our own homes would be something we would be interested in.

"We would have to look at how it could be done and how much finance we would need. For years councils haven't been able to build their own homes, so if there is a chance then we should very seriously consider it."

At this stage there is no indication where the housing might go - or how much it would cost.

Earlier this month, Mr Murray raised the possibility of demolishing Oxford's city council-owned tower blocks and regenerating areas with housing "fit for the 21st century".

The Government's change of heart may also come as a relief to the thousands of families on council house waiting lists in Oxfordshire. Figures show that last year, 14,550 families were waiting for a council home in Oxfordshire, including 3,800 in Oxford.

The figures do not include households waiting for transfers to other properties.

Last month, the city council agreed to press ahead with plans to demolish 97 Orlit houses in Rose Hill, which will eventually be replaced with 254 new homes in a project with Oxford Citizens Housing Association and developer Taylor Wimpey.

Housing Minister Ian Wright said that 'disincentives', which made it difficult for councils to build new homes, would be lifted.

The Housing and Regeneration Bill, which was published last week, would enable councils to keep the full rent from new social homes to pay back the cost of building them, rather than having to surrender 25 per cent of revenue to a central Government pot, as the current system demands.

Some councils may also be exempt from their duty to give up a quarter of their rent from existing stock.

The Bill would also establish Oftenant, a new watchdog to ensure tenants get a good service, and cut red tape.

Mr Wright said the measures were designed to support Prime Minister Gordon Brown's target of building three million new homes across England by 2020.

The Bill, which is expected to be debated in Parliament soon, would also establish a so-called homes and communities agency, a new quango responsible for bringing together responsibility for land and money to deliver new houses, community facilities and infrastructure.