Just under half (44%) of councils say financial pressures will harm how many homes they can build, according to a Local Government Association survey.

Nearly all councils said they planned to raise rents (99% down from 100%).

The number who said they felt confident they’d be able to maintain and repair existing housing stock rose to 61% this year, compared to 52% in 2025/26.

But nearly two-fifths of councils (39%) still do not feel able to maintain existing housing stock, despite providing good-quality housing being a priority for councils.

The survey, sent to councils to assess their financial stability, found the number of councils who said they’d need to draw on reserves fell to 46% down from 72% last year.

More respondents said they were confident of balancing their budgets, with 71% saying so this year compared to 61% in 2025/26.

LGA inclusive growth committee chair Tom Hunt said: “That nearly half say that pressures on their social housing budget will impact their ability to build more new homes is concerning.

“For the government to meet its ambition of 1.5 million homes, sufficient social housing supply is a key part of building the homes that our communities need.

“Supporting councils with the resources that they need to build, both financial and non-financial, will be crucial.”

A total of 154 councils responded to the survey.