South Lakeland Council's £6m new homes loan plan revealed
A council is planning to lend £6m to housing associations to tackle a shortage of rental homes.
South Lakeland Council wants 1,000 properties to be built by 2025 to meet demand and wants to kick-start building by offering low-interest finance.
Recent research carried out on behalf of the council found that 320 homes needed to be built in South Lakeland every year to meet demand.
A cabinet meeting will decide whether to approve the plan later this month.
Councillor Jonathan Brook, portfolio holder for housing and innovation, said: "The loan facility would allow housing associations to access low interest rate finance from the council, removing an obstacle which may be preventing them from developing more affordable housing in the area.
"The council would receive a financial return from the repayment of the loans and also be fulfilling our pledge to work with partners to deliver the new affordable homes which our communities need."