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Alan Ritchie, UCATT General Secretary, said: "This initiative is to be warmly welcomed it is an important first step in recreating a new generation of council housing. It is vital that the Government further expands on this announcement so that councils building homes for rent becomes the norm not the exception."
There are over 1.77 million people on housing waiting lists and in excess of 63,000 homeless households. The economic downturn has increased demand for social housing for rent.
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For the past 30 years successive Governments have introduced financial obstacles preventing councils from building new homes and have also used financial incentives to try to persuade them to divest themselves of their housing stock.
Instead of councils building new homes this responsibility was given to housing associations, who have failed to build sufficient homes to meet need, increasing waiting lists and causing widespread misery for homeless families.
Mr Ritchie, added: "Democratically elected local authorities are the only bodies which have ever been able to adequately tackle housing need. Councils must be the champions and drivers for new social housing for rent."
The Government's proposals will also create work for an estimated 5,000 construction workers.
Next week UCATT will be moving a motion at TUC Congress calling on the Government to further invest in social housing and will underline the primary role that councils must have in building new homes.
(CD/GK)
