Letter: Are We Getting Value for Money on Council Housebuilding?

Published on: 1 Aug, 2025
Updated on: 1 Aug, 2025

From Bilal Akhtar

Conservative borough councillor for Worplesdon

Liberal Democrat-led Guildford Borough Council has allocated £12.1 million to deliver just 27 homes under its HRA Small Sites Programme. That works out to an average cost of around £448,000 per unit.

This figure raises serious questions, not only about financial efficiency but also about stewardship of public funds.

To put this into perspective, the average build cost of a three-bedroom house in the South East, even accounting for regional variations, inflation and professional fees is typically between £250,000 and £350,000.

These estimates include modern construction standards and reflect real, deliverable prices for both private developers and housing associations.

So why is the council spending nearly £100,000 to £200,000 more per house than what is
commonly accepted as a reasonable benchmark?

It’s true that public sector housebuilding comes with additional regulatory, environmental, and community consultation requirements. But that alone does not justify a 40-70 per cent premium per unit, especially when the funds come from the public purse.

In a time of financial pressure, when councils are making difficult decisions on frontline services, such cost overruns or inflated allocations demand scrutiny, transparency, and accountability. This is not just a construction issue it’s a question of how seriously the council takes its duty to deliver value for money to taxpayers.

Housing is essential, but so is the trust in how it is funded. Guildford’s residents deserve
affordable homes and assurance that those homes aren’t needlessly costing more than they
should.

If Guildford Borough Council continues to make huge overspends like this, we risk not only wasting precious council taxpayer’s money but also undermining the sustainability of social housing delivery.