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Call for new generation of council houses in London

Tuesday, 20 December 2011 12:38 PM

A new generation of council houses in London could rescue families from the misery of bed and breakfast (B&B) accommodation and save money in the process, says the New Local Government Network (NLGN).

The think-tank published a report arguing that the cost of housing benefit for families in B&B and other temporary accommodation is so high that it would be cheaper in some parts of the capital to build new social housing for them with lower rents.

Ministers are preparing to implement a cap on the total amount of housing benefit anyone can receive that could force 64,000 families out of London.

The NLGN wants the government to consider the building plan as a less disruptive alternative that will also deliver more homes and boost growth.

The report argues that 9,500 homes could be financed through a combination of housing benefit set at lower social rent levels and grant from the Department of Work and Pensions to pay development costs.

Simon Parker, director of the NLGN, said: "We recognise the need to contain housing benefit costs, but the idea of building new homes represents a win-win solution for the government, councils and families.

"Our analysis suggests that 10 boroughs might be able to save money while providing more properties."

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