The government began consultation on proposals to dismantle the existing council housing finance system and replace it with a 'clearer, more transparent' system. A devolved self-financing system would remove the need to redistribute revenue nationally, while continuing to ensure that all councils had sufficient resources. Councils would finance their own business from their own rents and revenues, in exchange for a one-off allocation of housing debt. Linked background reports provided an analysis of focus groups held with tenants to explore their attitudes towards council housing finance and rents policy; provided an analysis of various options for dealing with debt in local authority housing; reviewed the major repairs allowance model, and produced estimates of the resources required to maintain the stock in a decent condition beyond 2010; analyzed rents policy; and estimated the costs of running council housing by considering what management and maintenance activities should be covered under landlord services.
Source: Reform of Council Housing Finance, Department for Communities and Local Government (0870 1226 236) | Natalie Taylor, Tenants' Attitudes Towards Council Housing Finance and Rents Policy, Department for Communities and Local Government | David Hall, Options for Dealing with Housing Loan Debt in the Local Authority Sector, Department for Communities and Local Government | Building Research Establishment Ltd, Review of the Major Repairs Allowance, Department for Communities and Local Government | Steve Wilcox, Analysis of Rents, Department for Communities and Local Government | HQN Limited, Evaluation of Management and Maintenance Costs in Local Authority Housing, Department for Communities and Local Government
Links: Consultation document | Hansard | DCLG press release | Report on tenant attitudes | Dealing with debt | Major repairs report | Analysis of rents | Management costs report | Summary of commissioned research | Impact assessment | DCH press release | Inside Housing report | Local Government Chronicle report
Date: 2009-Jul
A report set out proposals for reform of local council housing finance in England, including abolition of the 'broken' housing revenue account subsidy system; financial independence for council landlords, including the right to retain rental income; and cancellation of the historic housing debt. It said that these reforms would allow councils to build 80,000-90,000 new homes in the following 5 years, and would increase investment spending by £35 billion.
Source: Local Housing – Local Solutions: The case for self-determination, Local Government Association (020 7664 3000)
Links: Report | LGA press release | BBC report | Inside Housing report | Local Government Chronicle report
Date: 2009-Jun
The government announced that it would publish a consultation document on reform of council housing finance. The plan was to dismantle the housing revenue account subsidy system, and to replace it with a devolved system of responsibility and funding. The aim was to increase local responsibility and accountability for long-term planning, asset management, and meeting the housing needs of local people.
Source: House of Commons Hansard, Written Ministerial Statement 30 June 2009, columns 7-10WS, TSO (0870 600 5522)
Links: Hansard | London Councils press release | CIH press release | Inside Housing report
Date: 2009-Jun
A report by an all-party group of MPs said that the government had taken over £68 billion from council house rents and sales over the previous 30 years – more than enough to pay off the historic debt owed by local councils for past housebuilding, and to meet the investment backlog. Writing off historic debt and removing this element from the housing subsidy system altogether would making housing finance fairer and much simpler.
Source: The Money's There: Debt write-off, gap funding and receipts, House of Commons Council Housing Group c/o Austin Mitchell MP (0207 219 4559)
Links: Report | DCH press release
Date: 2009-Jun
The government announced that the average guideline rent increase for local authority tenants in 2009-10 would be halved from 6.2 per cent to 3.1 per cent, in the light of exceptional economic circumstances.
Source: House of Commons Hansard, Written Ministerial Statement 6 March 2009, columns 71-72WS, TSO (0870 600 5522) Links: Hansard | DCLG press release | LGA press release | DCH press release | London Councils press release | TSA press release | Inside Housing report (1) | Inside Housing report (2)
Date: 2009-Mar
A new book examined housing finance. It considered the advantages and limits of housing markets, and why governments intervened in them. The consequences of intervention were explored in detail using examples of housing subsidy systems and policy mechanisms such as rent control, housing allowances, and subsidies to owner-occupation.
Source: Peter King, Understanding Housing Finance: Meeting needs and making choices, Routledge (01264 343071)
Links: Summary
Date: 2009-Jan