Preston City Council has taken a significant step towards re-entering the social housing market, more than 20 years after transferring its housing stock to Community Gateway Association. Following a successful application to the Regulator of Social Housing, the council is now officially registered as a local authority registered provider of social housing.
The move marks a turning point for a city that has watched demand for social rented homes outpace supply for years. Preston has delivered more than 1,700 affordable homes over the past five years, but council leader Councillor Matthew Brown acknowledges that affordable rent alone is not meeting the needs of residents who require social rented accommodation.
“The long-held ambition of the council to hold its own social housing stock again after a long hiatus is one step closer to tackling the shortage of quality, social rented, affordable homes available to Preston residents,” Brown said. “Demand for social and affordable rented homes remains high, with long waiting lists and pressure from households in poorer quality, private rented accommodation. As seen across the country, the council’s reliance on temporary accommodation has also increased over recent years. This helps to redress the balance.”
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Waiting lists across the UK have been escalating, as affordability pressures have collided with depleted social housing stock and left many households relying on councils to provide temporary accommodation. Temporary accommodation has become a significant drain to council’s finances across the country, with spending estimated to reach £4BN by 2029/30. There has also been concerns raised over the blurred lines between social and other affordable tenure homes, with a government report recently claiming only social homes could be considered truly affordable to many families across the UK.
The council was authorised in January to submit an offer to a developer for 19 homes, later revised to 18. That offer has been accepted, and a report is now being taken to the June council meeting to progress the deal, subject to legal agreements. If approved, the next step will be to appoint a registered provider to manage housing services, repairs, statutory compliance and regulatory support.
Construction of the homes is already underway, with phased practical completion expected between November 2026 and April 2028. The council has set aside £5m in its budget over the next two years to support the delivery of further social rented homes and explore similar schemes.
Brown added: “Whilst it is great that there are affordable rents available within the Preston housing market, evidence suggests there is demand for more social rented homes for those local families that need the help the most.”
