The Localism Bill

The CLG has published its long-awaited Localism Bill. This major piece of legislation has huge implications for social housing and local government.
Here is a break down of the key Social Housing components of the Bill;
*Social Housing Allocations reform
*Reform of Homelessness legislation
*Social Housing Tenure reform
*Reform of Council Housing Finance
*National Homeswap Scheme
*Reform of Social Housing Regulation
*Facilitating moves out of the social rented sector
Find more detail on the 24dash website.

£25 Billion Reform Would Leave Councils with ALMOs Better Off

Councils with ALMOs could see their collective housing debt fall by more than £5.3 billion under proposals for reform of the housing finance system. Analysis of the government’s proposals by consultancy HQN found councils with ALMOs would see their collective housing debt fall by 34 per cent from a total of £15.98 billion to £10.59 billion. But 27 ALMO authorities would see their debt rise. Councils that manage their homes would see their housing debt rise by 164 per cent, from a total of £5.5 billion to £14.5 billion. Read more on the Inside Housing website.

Healey on the Future of Council Housing Finance

Housing Minister John Healey has described his plans to reform council housing finance as a 'once in a generation opportunity' for local authorities. He said it was 'unlikely' councils would ever get a better deal and urged local government bosses to take a 'serious look' at the proposals during the consultation period. Under the new self-financing system, local authorities would keep all the rent they collect from their homes and all the receipts from any sales of houses or land. He confirmed not a single penny would go to Whitehall and not a single penny would subsidise other councils as the current system dictates. Find out what else John Healey had to say in this exclusive interview with 24dash by clicking on the logo below.

Council Housing: A Real Future – Consultation

A consultation titled Council Housing: A real future setting out detailed proposals for self-financing has been published. It seeks the views of councils on implementing this new system and can be found by clicking on the CLG logo below. The consultation closes on the 6 July 2010.

Housing Sector Response To Reform Of Council Housing Finance: Consultation

On 21 July 2009 CLG published a consultation document titled Reform of Council Housing Finance. This included an option of dismantling the current HRA subsidy system and replacing it with a devolved system of financing and accountability termed self-financing. There is a summary of responses to that consultation on the CLG website below.

Council House Finance

John Healey MP (Minister for Housing) has released a statement on council house financing in which he announces dismantling the HRA subsidy system, replacing it with a devolved system of responsibility and funding for council housing. Under this, councils will finance their own housing from their own rents, in exchange for a one-off redistribution of housing debt to make the settlement financially neutral between central and local government. The reform will guarantee tenants whose homes have been upgraded through the Decent Homes programme that their homes will be maintained at least to this standard for the future. Read the Minister’s full statement on the CLG website.

LGA Supports Calls For Reform Of Council House Financing

The Local Government Association has said that councils could deliver up to 500,000 new homes over the next decade if restrictions on housing budgets and planning were lifted. They have published a five point plan calling for fundamental reform to the way social housing is funded to meet the ever increasing demand for homes. The LGA is calling for councils to be given:
*The freedom to manage the finances of their own housing.
*Power to keep income from selling existing homes, which could help them building up to 150,000 new homes over 10 years.
*Access to funding for affordable homes on the same terms as housing associations and private developers.
*Changes to the grant system for local authorities to enable them to get money more quickly to pay for facilities such as schools for people who move into the area when they build homes.
*New freedoms to develop roads, schools and other facilities at the same time as homes.

Council Housing Finance Reform

Grant Shapps MP (Conservative Shadow Housing Minister): When will the Government publish responses to the Reform of Council Housing Finance consultation? How many responses from (a) local authorities and (b) other bodies to the Reform of Council Housing Finance consultation have been received? When does the Government intend to announce proposals for the replacement of the council housing finance system?
John Healey MP (Housing Minister): I intend to make an announcement and publish a summary of responses to the consultation shortly.

Review Of Council Housing Finance - Parliamentary Written Answer

Jim Cousins MP (Labour, Newcastle Upon Tyne): When does [the Minister] expect to conclude his review of council housing finance and the future of local council housing?
John Healey MP (Minister of State for Housing): On 16 December 2009, I announced that the responses to the consultation on proposals for the reform of council housing finance showed overwhelming support for the principle of self-financing. I intend to make a further announcement in February which will confirm the progress we have made on self-financing and set-out more details of the proposals. I also intend to publish a summary of responses to the consultation in due course.

LGA Ditches Debt Demand

The Local Government Association has dropped its call for all housing debt to be written off as part of the government’s council housing finance reforms. The LGA’s original stance had been for all debt to be written down but because of the ‘current fiscal position’ the LGA had changed its opinion. Read the full story on the Inside Housing website.

Review Of Council Housing Finance - PWA

Jim Cousins MP: (Labour, Newcastle Upon Tyne Central): When does the Government plan to announce the conclusions on the review of the financing of council housing?
Ian Austin MP: Consultation on proposals to replace the housing revenue account subsidy system with a devolved system of responsibility and funding for council housing closed on Tuesday 27 October. We intend to set out our plans for implementing reform early next year.

Councils, MPs And Tenants Say Funding Offer Not Adequate

Tenants, MPs and councils are telling government the latest proposals for council housing fall way short. As the Council Housing Finance Reform consultation closed, Ministers are under growing pressure to improve the proposed financial settlement. Defend Council Housing's full response to the consultation can be found here. Also of interest is the response by the Moonlight Robbery campaign.Councils are beginning to publish their responses, most highly critical of the government’s proposals. See the new DCH website webpage for more of this story and a summary of Councils' responses to the consultation.