Response - Reform of Council Housing Finance

By: Deborah Garvie
Published: October 2009

Response - Reform of Council Housing Finance

Shelter welcomes the Government’s intention to dismantle the current Housing Revenue Account Subsidy System.  We urge the Government to introduce a system that:


  • allows all revenue and capital receipts to be reinvested in maintaining existing council stock and building a new generation of council homes in the areas where these are most needed;


  • ensures low rents and protects tenants from the risk of future rent hikes – the consultation paper (paragraph 2.28) is not proposing any changes to rent policy, but says the Government expects to deal with future council rent policy separately, in the context of the HRA subsidy determination for 2010-11 and a future direction from the Secretary of State to the Tenants’ Services Authority;


  • ensures that enough money is available to bring all council homes up to the Decent Homes standard and for the future management, maintenance and modernisation of council homes.