Self-Financing Could Help Councils Build Homes

The new system of self-financing for councils could enable authorities to build more homes and improve services for tenants, according to a report by umbrella group London Councils. The report, called From self-financing to self determination looks at options which councils could use individually or collectively to improve the performance of their HRA under the new system.
The report says that is important for all councils to more actively manage their housing assets, and that a robust business plan is established to test income and expenditure assumptions. It suggests councils could look at entering into long-term contracts with private companies, which would undertake capital investment and make repairs in return for a payment. It says councils could look at stock transfer to release borrowing capacity under the HRA debt cap or use borrowing headroom, the gap between their HRA debt settlement and the borrowing cap, to fund development. The report also looks at ways councils could work together in the future. Download a copy of the report from the London Councils’ website.