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Councils are demanding the Government ease borrowing restrictions to help them confront the nation's housing crisis.While enthusiastically embracing the chance of fresh funding to build new homes, councils are simultaneously bulk buying completed newbuilds at massive discounts as developers struggle to sell them commercially in a flatlining housing market.The MJ this week reveals that some councils are snapping up hundreds of homes at discounts of as much as 40% on market prices.The deals are proving a win-win, with councils able to pick up new properties at competitive rates as they struggle with growing temporary accommodation costs and developers pleased to off-load stock in a depressed economy.But both sides have called on ministers to act so councils can do even more bulk buying deals.With London experiencing the most severe housing pressures in the country Cllr Anthony Okereke, London Councils' executive member for housing and homelessness, said: ‘London's housing emergency is the most extreme in the country and requires urgent action on multiple fronts.‘Building more affordable homes is clearly essential, but boosting London boroughs' ability to buy existing housing is another vital part of the solution.‘Boroughs' acquisitions have unblocked stalled sites, converted market housing into affordable homes, reduced reliance on the private rented sector for finding desperately needed temporary accommodation, and supported London's wider development sector in a downturn.‘We would certainly welcome further support from the Government on this issue. Boroughs are calling for additional and more flexible grant, improved access to low-cost loans, and a review of the HRA [Housing Revenue Account] debt settlement to increase borrowing headroom.‘With greater financial firepower we can act quickly to acquire more homes, helping to reduce housing pressures within our communities and to keep a roof over the heads of homeless Londoners.'Stephen Teagle, chief executive officer, partnerships and regeneration for Vistry – one of the largest developers working with councils and housing associations – added: ‘The concept of local authorities having the financial capacity to procure homes [through bulk buying] I totally welcome.‘That would be a great route to trying to address some of the long-term problems that we see our communities have in terms of having the right supply of housing.‘The issues is, how do local authorities obtain the financial freedoms to do that? They need to access affordable loans. Many are grappling with indebtedness under the HRA.'The news comes as Ealing LBC, a London borough leading the way on bulk housing acquisitions announced a new deal to buy 95 new flats at Bollo Yard in Acton.The homes were previously intended for sale as shared ownership or at 80% of the market rent but will now become socially rented for local people on the council's housing waiting list.It is the third deal the council has done with a developer in the last 14 months, having already bought almost 200 homes in Southall and a further 110 in Acton.Cllr Louise Brett, the council's deputy leader and cabinet housing lead, told The MJ Ealing had achieved ‘a very significant percentage reduction in market value' of up to 40% on the deals.‘We are in a position to negotiate quite hard,' she said. ‘At the moment we are seeing an opportunity in the market and taking advantage of that.'‘The thing councils will need is to get fairer borrowing rates. The Government helping councils with that would be a positive move.At the time of going to press the Ministry of Housing, Communities and Local Government had not responded to a request for comment.See also News Focus

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HOUSING

Calls to ease borrowing restrictions in wake of homes buying blitz

By By Paul Marinko | 03 September 2026

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