£136 million payment could mean new council houses

Changes in the Localism Act, which come into effect in April, will change the way the Government funds council housing and will give Warwick District Council more control over its current and future stock.

The authority would be able to keep all the money it receives from council housing rents and use it to maintain and manage its housing, increase investment to improve standards and build new homes.

The council would have to make a one-off payment of about £136 million, which it says can be accommodated within its business plan without additional increases above Government guidelines for rents or the amount of investment that will be made to housing stock in future years.

The business plan is subject to full council approval at a meeting on Wednesday March 7.