Quote World of Redboy="World of Redboy"Are governments allowed to say to councils, here's a certain amount of money, you will build low cost housing?'"
Its how it used to be, or seemed to be, but probably the other way around.
Local authorities had a requirement (as they still do) to provide social housing, housing for rent at what some would say was subsidised prices albeit that the ones who say it is subsidised are usually the ones who prefer to charge as high a price as possible in their own rental properties.
Anyhoo, back in the day when I was working in construction we would always tender to the local authorities on new developments or for refurbs so it was they who commissioned the sites and they who ultimately were the paymasters, presumably that money had come from central government in the first place so that they could fulfil their requirement to provide a certain level of affordable rental properties.
It all sounds very socialist now but Tory governments worked the same way too albeit that occasionally there was friction with some very far left councils, I seem to recall some Tory Minister mentioning that Derek Hattons Liverpool would be defeated by starving of investment but all in all I worked on many social housing schemes through at least the early years of Thatchers reign.