Reform of the HRA framework transferred around £28bn of housing debt to stock-owning local authorities with limits imposed on the amount councils could borrow against their housing assets.
The new system is forecast over the next 30 years to give councils control over £300bn of rental income and surplus rental streams that can support significant levels of new build. Under current debt caps stock-retaining councils could, collectively, borrow around £3bn to build 15,000 new homes over the next 5 years (or as many as 60,000 without the cap). The reforms are also intended to increase local transparency and accountability; improve management, maintenance and repairs; and encourage partnership working with housing providers.
This Talking Points publication explores the impact of the reforms, based on a survey and roundtables with housing professionals and experts from local authorities and housing associations, as well as senior policy makers and government officials.