Earlier this year the government announced radical changes to the way rental incomes from social housing are collected. These changes will give councils control of over £300 billion of rental income and make them responsible for deciding how they use it to meet their local housing needs.
Through the current system (the Housing Revenue Account subsidy) the rental income is paid to central government, and returns are then made to councils for management, maintenance and investment for their housing stock.
This system is widely regarded as complex and unfair; councils have no certainty as to what level of funding they will receive from one year to the next, and are consequently unable to properly manage their housing stock.
This publication looks beyond the technical details in the Bill and associated guidance and looks at the medium to long term investment prospects. How much investment will HRA reform unlock? And how should councils best prepare themselves?