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Wednesday 13 August 2025 10:00 pm  |  Updated:  Wednesday 13 August 2025 7:50 pm

Think tank calls for policy changes to avoid ‘eyesore’ council houses

By: Amber Murray

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A think tank has called for the overhaul of the way local authorities approach council houses to encourage building and avoid ‘eyesore’ houses.

Policy Exchange’s report, which is backed by former Labour Housing Secretary Ruth Kelly and ex-Housing Minister Kevin Hollinrake, called for a new national design code for council houses as well as a new version of the Infrastructure Levy to help local authorities self-finance the construction of new council homes.

“Council houses… must not only be built, they must also be of high quality,” Kelly said.

“[Britain needs] council housing that does not merely meet targets or satisfy regulations but revitalises neighbourhoods and strengthens communities,” she added.

The country faces a severe shortage of council houses, with Thatcher’s ‘Right to Buy’ policy leading to an exodus of homes to the private market, and subsequent governments failing to build enough housing to keep up with demand.

Policy Exchange has called for Right to Buy to be repealed, meaning there will be a statutory obligation to build a new home for every one sold.

There’s an overall backlog of 4.3m homes in Britain, with 1.3m households on the waiting list for social housing in England. The UK spends almost £25bn on housing benefits every year.

The knock-on effects of our housing crisis include growing inequality between homeowners and renters, overcrowding, higher commuting distances, reduced economic output as people are put off moving to expensive cities and a diversion of investment into playing the housing market.

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100,000 council houses needed a year

Policy Exchange has argued the government needs to “go beyond” its pledge of an additional £39bn over ten years for ‘affordable’ housing by building 100,000 council houses a year.

“The [housing crisis] is not solely a problem of dwindling council housing stock but low levels of new council house construction,” Policy Exchange said.

Kevin Hollinrake MP, Conservative party chair and ex-shadow housing secretary, said he “welcomed the central message of [the Policy Exchange’s] paper”.

“There is no solution to the housing crisis unless we are committed to building beautiful, inspiring, and affordable homes.

“If the recommendations of this report are properly considered, a new generation of council housing can make a meaningful contribution to fostering both strong communities, and national economic growth.”

David Simmonds, shadow minister for Housing, Levelling Up and Communities and MP for Ruislip, Northwood and Pinner, added: “In the rush to increase the quantity of social housing, we must not ignore the need to ensure that new homes are built to a high quality.”

“It is essential that we build council housing stock that enhances and serves communities – for generations to come.”

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Construction workers in hard hats and high-vis jackets on scaffolding around a Vistry housing development.

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