READING Borough Council has bid for over £40m in funding to build another 170 affordable new council homes in Reading.

Bids were submitted in late September, with successful applicants expected to be announced this Autumn.

RBC is one of several local authorities in the country who recently submitted bids to government for more borrowing capacity to build new affordable homes for rent.

Councillor John Ennis, lead member for Housing, said: “Like many other areas in the south-east, Reading is an increasingly unaffordable place to live for so many people.

“Rising house prices and private rents, combined with the Government’s welfare reforms, has seen more people approaching the council for help after becoming homeless, or because they are in housing need.

“In light of the national housing crisis, Government has acknowledged that local authorities have a vital role to play in providing new council homes.”

The bids are for an additional £33,180,400 of borrowing capacity within the Housing Revenue Account (HRA) and £7,920,000 of Affordable Homes Programme Grant Funding to support a £47,916,000 development programme.

RBC is currently considering options for new council homes, having built 78 new affordable homes over the past two years.

Cllr Ennis said another 151 council-owned homes will be delivered over the next two to three years, including 57 new homes at Conwy Close, Tilehurst.

Public consultation will take place with local communities over the next few weeks.

The average house price in Reading is around £320,000 for a terraced house, while private sector renting can be over £1,000 per month for a two-bed flat.

Combined with credit checks, a requirement to pay hefty deposits and rent in advance, and reluctance of some private landlords to let to people on benefits, many people find themselves struggling to access affordable housing locally.

More people are approaching the council for help after becoming homeless, or because they are in housing need.

Reading needs to provide an additional 699 homes every year, of which 406 needed to be affordable, according to the 2016 Berkshire-wide Strategic Housing Market Assessment.

The Ministry of Housing, Communities and Local Government announced opportunities for councils to increase borrowing within the HRA in June 2018.

The HRA is ring-fenced and separate from other council activity.

Local authorities can also bid for grant funding through the Shared Ownership and Affordable Housing Programme, co-ordinated by Homes England.