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Property Development: Local Government

Asked by Kevin HollinrakeConservativeMinistry of Housing, Communities and Local GovernmentTabled Answered 19 June 2025UIN 58970

The question

To ask the Secretary of State for Housing, Communities and Local Government, what guidance her Department has issued to local authorities on offering loans to property (a) companies and (b) developers.

Answered by Matthew Pennycook

It is for local authorities to determine their own capital strategies given they are best placed to understand local needs and are accountable to the local electorate.

In doing so, local authorities have a duty to comply with the Prudential Framework and must have regard to statutory guidance to ensure plans are prudent, affordable, and sustainable.

Guidance for local authorities on investments was published under the previous government. A copy can be found here.

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