Review of council housing finance (HRA Subsidy Review)

On 10 March 2008 Caroline Flint, Housing and Planning Minister and Yvette Cooper, Chief Secretary to the Treasury, formally launched a joint (Communities and Local Government and HM Treasury) review of Council Housing Finance (including the Housing Revenue Account (HRA) system).

See News release: Yvette Cooper and Caroline Flint launch the review of the Housing Revenue Account Subsidy system - 10 March 2008, for further details.

The purpose of the review is to develop a sustainable, long term system for financing council housing, one that is consistent with wider housing policy, including the establishment of a regulator of social housing. The principles, remit and scope of the review are set out in the Terms of Reference.

The Review is due to report to Ministers in the spring of 2009, setting out options for the subsidy system, including proposals for changes to rent policy and to inform the next spending review. A formal consultation will follow the review.

A number of Chartered Institute of Housing (CIH) facilitated regional events and theme-based workshops have been held with experts and practitioners to discuss different aspects of the review.

The events were framed around the following workstreams:

Costs and standards
Rents and service charges
Funding mechanisms, and
Rules governing the HRA

In addition the CIH have set up an E-forum at http://moodle20.cih.co.uk/ (external link) where you can register and debate a range of questions/issues related to the review. The forum is now closed but the papers are still available to view and the forum will be re-opened during the consultation period.

During the review we collected tenants' views using a questionnaire and through focus groups. An overview of the views expressed was published on 19 March 2009. The views will be a key component of any outcome of the Review. There will be a further chance to express views during the consultation period.

Communities and Local Government and HM Treasury have also held regular bi-lateral meetings with sector representatives.

The deadline for submitting evidence to the review has now also passed. The review team are analysing this evidence and will report to ministers in Spring 2009. There will be a period of formal consultation before any recommendations are implemented.

If you wish to contact the review team, you may email us at hrareview@communities.gsi.gov.uk.