Colchester City Council’s cabinet is set to discuss insights from a “State of the Nation” Housing Report, highlighting both local progress and challenges as the city confronts key issues in social housing, affordability, and homelessness prevention.
Colchester has welcomed the Government’s new funding measures for social housing, including increased autonomy over Right to Buy receipts, allowing greater investment in the development and maintenance of affordable homes locally. However, even with extended funding under the Affordable Homes Programme, there remains an urgent need to address gaps in affordable housing, as demand continues to outpace supply in Colchester and across the nation.
The council’s Housing Revenue Account (HRA) review is now focused on addressing persistent budgetary strains and plans to implement new measures for long-term sustainability in 2025. This HRA review forms part of the council’s significant Fit for the Future programme of investment and transformation to ensure it has long-term financial resilience.
Homelessness rates have surged nationally, and Colchester is not immune to these pressures. Despite proactive local strategies, including the strategic use of surplus student housing to reduce B&B reliance, the city has seen a 25% increase in temporary accommodation use since March. The additional £233 million announced for homelessness prevention is encouraging, but Colchester is facing challenges due to outdated Local Housing Allowance rates. The council will lobby the Government for fairer rates and sustained financial support, as rising placements outside the city affect both services and budgets.
The Government’s proposed rent increase policy (CPI +1%) from April 2026 promises much-needed stability, helping councils better budget for social housing investment. Colchester City Council, however, advocates for a 10-year settlement to support robust and sustainable planning within its Housing Revenue Account (HRA), ensuring predictable rental income to maintain and expand quality housing.
To illustrate the need for a more significant increase, consider the Local Housing Allowance for a three-bed property in Colchester, which, at £224 per week, is currently significantly below market rent that is on average over £300 a week.
Colchester Borough Homes (CBH) remains committed to prioritising tenant safety. In line with lessons learned from the Grenfell tragedy, CBH and the city council have in place robust governance measures and are preparing to meet upcoming requirements under Awaab’s Law and any changes to the Decent Homes Standard. This commitment to tenant safety and well-being underscores Colchester City Council’s dedication to providing high-quality, secure housing for all residents.
With the Renters Rights Bill’s pending ban on no-fault evictions, the council is preparing for potential impacts, as tenant protections and housing security remain priorities. The council’s Housing Board is assessing any new requirements and responsibilities to ensure that Colchester’s renters are protected and heard, with the rights of tenants reinforced at all levels.
Councillor Paul Smith, Portfolio Holder for Housing, said: "We are committed to providing safe, secure, and affordable housing for all residents in Colchester. While we welcome the Government’s recent announcements, there is still much work to be done to address the housing crisis. We are determined to work closely with our partners to find innovative solutions and ensure that everyone has a place to call home.
“In response to the escalating housing crisis in Colchester, we are proposing innovative solutions to increase the availability of affordable housing and provide temporary accommodation for those in need.
“To address the city’s ongoing housing challenges, the council is planning to extend its use of affordable rents to properties purchased through its ‘buy back’ programme. This will make more affordable homes available and maximise the council’s capital investment.
“In addition, we are exploring the possibility of leasing student accommodation to serve as temporary housing for residents. This initiative aims to provide a flexible and cost-effective solution to alleviate the burden on existing temporary accommodation. We are in advanced discussions with private sector owners of former student housing in Colchester to secure this accommodation.”
Colchester City Council is dedicated to creating a city where everyone has a safe and secure place to call home. By addressing pressing housing challenges, such as homelessness and affordability, the Council aims to build a stronger, more resilient community for future generations.
Page last reviewed: 19 November 2024