Housing Finance: how government robs council housing

Politicians and housing professionals make out housing finance is very complicated but the principles for tenants are simple. Stop robbing council housing: all the money from our rents and capital receipts should be ring-fenced to manage, maintain, repair, improve and build new council housing (the 'Fourth Option'). Discrimination against council housing should end. We need a 'level playing field' so that council housing gets the same rights and access to gap funding, debt write-off and borrowing as other types of landlords.

In December 2007 Housing Minister Yvette Cooper announced a review of the current system with the commitment "to ensure that we have a sustainable, long term system for financing council housing".

This review is welcome, but is not reporting until 2009 with spending to be agreed in the next Comprehensive Spending Review.

DCH argues there have to be interim measures to respect tenants' choice. We call for gap funding where tenants have voted for retention to improve their homes and estates, and an increase in Management & Maintenance Allowances (M&M) this year to support a moratorium on further privatisation while the review takes place.

The arguments are explained in more detail in our Dear Gordon 2 pamphlet and the initial submission to the government 'Review of Council Housing Finance'. There are links to supporting documentation with more details on the left, and press articles to the right...

Summary of DCH 'Initial Submission' to government review

"The fundamental problem facing council housing is insufficient resources to manage, maintain, repair and improve existing council homes and estates and to build new council housing.

If all the money that belongs to council housing (rental income and capital receipts) was ring-fenced and reinvested, and there was a level playing field on debt write-off, gap funding, borrowing and Social Housing Grant, council housing could pay its own way.

Successive governments have been taking a profit from council housing each year and then bullying and blackmailing tenants to accept privatisation. This is a disgrace!

The Treasury take from tenants rents and capital receipts far exceeds the allowances they give local authorities for management and maintenance (M&M) and major repairs (MRA) each year.

The recent ‘justification’ for some of this robbery is that tenants should support historic debt. But capital receipts from council housing have been enough to pay off this debt three times over; council tenants don’t have a financial interest in the property; and government doesn’t ‘recover’ money paid to home owners (Mortgage Interest Tax Relief) or Registered Social Landlords (Social Housing Grant) so why fleece council tenants to pay for an asset that remains in public ownership?

Continued discrimination against council housing and the lack of a ‘level playing field’ on debt write-off, gap funding, borrowing and Social Housing Grant cannot be justified.

It is not the principle of a national pooling system that is the problem. Council tenants are angry that government profits from council housing but we can also see how some politicians are using the old tactic of ‘divide and rule’ to try and break up a national council (public) housing sector.

We are suspicious that proposals for councils to ‘opt out’ of the national HRA would leave council housing in a more precarious situation and is a stalking horse for privatisation.

Government has to accept that M&M and MRA allowances must be funded at level of need and council housing put on a ‘level playing field’.

Then local authorities would be able to plan ahead on the same basis as other landlords and council housing would provide first class secure housing, managed by an accountable landlord at rents people can afford for existing tenants and future generations on a sustainable basis and ‘in perpetuity’."

Press Articles

Rebecca Long-Bailey commits to cancelling bogus council housing debt

Council Housing Debt Campaign

29/02/20

Councils call to go further with HRA funding freedoms

Inside Housing

12/05/18

Council debt settlements risk hurting existing tenants and should be recalculated

Inside Housing

07/02/18

Capita shares tumble

Inside Housing

31/01/18

Twitter fight sees stay on high value council home sales

24dash.co.uk

21/12/17

UK is worth £10 trillion - more than half is land value

Daily Telegraph

06/12/17

44% of councils have housing company

Inside Housing

06/12/17

The lowdown on 'bespoke' council housing deals

Inside Housing

22/11/17

OBR attacks stamp duty abolition

24dash.co.uk

22/11/17

Time to re-open council housing debt settlement

Keep our council homes

27/10/17

Let councils take back control of housing assets and revenue

24dash.co.uk

23/10/17

Labour secures debate on supported housing

24dash.co.uk

20/10/17

We shouldn't celebrate rent increases

Inside Housing

17/10/17

Javid: HRA borrowing cap can be lifted for fire safety

24dash.co.uk

11/10/17

Government announces rent settlement from 2020

24dash.co.uk

05/10/17

Balance of funding away from affordable housing

Inside Housing

04/10/17

Labour demands £1.1 billion housing rescue

Morning Star

02/10/17

Brexit cuts off cash for social housing

24dash.com

22/08/17

Councils cannot afford work on high-rises; LGA

24dash.co.uk

12/08/17

Outsourcing is killing local democracy

Guardian

10/08/17

Council leader: lift borrowing restrictions

Inside Housing

20/06/17

Barwell on the beat

Inside Housing

03/06/17

No mention of High Value Levy in conservative manifesto

ARCH newsletter

26/05/17

Underfunding of council housing - impact on Bristol

Keep our council homes

06/03/17

Councils plug budget holes as rent cut bites

Inside Housing

25/02/17

LRC calls for cancelling housing debt

Keep our council homes

17/12/16

Doubt over higher value levy date

Inside Housing

09/11/16

Council housing: cancel the debt

Labour Briefing

06/11/16

Long term value of social housing falls post rent cut

Inside Housing

26/09/16

Minister criticised for response to rent cut question

Inside Housing

02/08/16

S&P downgrades association credit ratings after referendum

Inside Housing

05/07/16

Starving council housing of funds

Wordpress

25/06/16

European Investment Bank would reduce funding if Leave wins

Inside Housing

16/06/16

High value, higher value, what's in a word?

Wordpress

08/04/16

Johnny Depp highlights sky-high house prices in Cambridge

Cambridge News

23/03/16

Why council housing debt should be written off

Wordpress

11/03/16

Second 'powerhouse' council facing huge loss on housing revenue

24dash.com

08/03/16

Councils axe build programmes after rent cut

Inside Housing

27/02/16

Councils left 'in the dark' over high value asset levy

Inside Housing

25/02/16

Social Housing stitch-up

Morning Star

02/02/16

Levy on luxury homes would net £86 million for social housing

Guardian

30/01/16

Zac Goldsmith - 'London social housing percentage unusually high'

24dash.com

08/01/16

Council rent cut - suspend payment of debt

Keep our council homes

15/12/15

East Anglia overtakes London house price growth

Guardian

10/12/15

Landlords plan repair cuts

Inside Housing

19/11/15

Oxford house building plans 'canned'

Inside Housing

06/11/15

Moody's: Response to ONS decision - 'credit negative'

Inside Housing

03/11/15

Housing advisory forum calls for compensation for loss of income from rent cut

Keep our council homes

30/10/15

Councils under HA pressure

Morning Star

13/10/15

Compensate councils for loss of income

Wordpress

02/08/15

Welfare Reform Bill - provisions on social housing rents

ARCH newsletter

24/07/15

CIH: rent reduction makes RTB replacements impossible

Inside Housing

22/07/15

Summer Budget - social housing and welfare details

24dash.com

08/07/15

Rent fears as UK enters deflation

Inside Housing

20/05/15

Second rating agency warns of Right to Buy impact

Inside Housing

16/04/15

Why is housing benefit bill still rising?

Wordpress

22/01/15

Mayor releases £145 million to repair London council homes

24dash.com

21/01/15

At yacht parties in Cannes, Councils have been selling our homes from under us

Guardian

14/10/14

Housing Associations bedazzled by lure of profits

Daily Telegraph

20/08/14

Councils may hacve to return HRA cash

Inside Housing

03/03/14

Fourth council raiding rents exposed

Inside Housing

14/10/13

Bedroom tax savings likely to be £160m less than projections

Guardian

14/10/13

Fiscal folly

Inside Housing

10/07/13

Landlords could demolish bedroom taxed homes

Inside Housing

05/07/13

NHF report shows devastating impact of bedroom tax

24dash.com

05/07/13

Sharp rise in Scotland rent arrears since Bedroom Tax

Morning Star

07/06/13

Council to use HRA funds to limit bedroom tax

Inside Housing

17/04/13

Do the maths

Inside Housing

30/03/13

Shared equity cash could have built 175,000 homes

Inside Housing

22/03/13

Balls attacks spare homes subsidy

Inside Housing

22/03/13

Moodys downgrades housing associations credit rating

24dash.com

26/02/13

Housing debt - the interests of tenants come first

Wordpress

22/01/13

Landlords to float on stock exchange

Inside Housing

18/05/12

MPs urge government to scrap council borrowing caps

Inside Housing

08/05/12

MPs slam government for housing paralysis

Morning Star

08/05/12

CIH expresses concern over HRA U-turn

CIH news

22/03/12

Pickles: Grant withdrawal for housing associations might happen

24dash.com

02/03/12

Council to double spending on housing

24dash.com

20/02/12

Who really gets government subsidised housing?

Guardian

28/01/12

Strategy will hurt housing sector

Inside Housing

22/11/11

Housing strategy aims to double housebuilding

24dash.com

22/11/11

Housing associations could see RTB funds

24dash.com

24/10/11

Council housing takeover plan

Sheffield Star

12/10/11

Self-financing jeopardised by Right to Buy changes, says ARCH

ARCH Press Release

10/10/11

Jack Dromey shadow housing minister

24dash.com

10/10/11

Why reviving Right to Buy won't work

Guardian

04/10/11

Right to Buy revival

Inside Housing

02/10/11

More than 2 million council homes up for grabs

24dash.com

02/10/11

Danny Alexander announces loan rate lifeline for councils

Guardian

20/09/11

Government to cut HRA loan rates

Public Finance

19/09/11

Interest cut boost for housing

Inside Housing

18/09/11

HRA self-financing - planning the transition

CIH briefing

11/08/11

How to prepare for self-financing

Guardian

04/08/11

Date set for move to self-financing

Inside Housing

29/07/11

Treasury 'cash grab' to hit council homes

Public Finance

18/07/11

Successful bidders for affordable homes revealed

Inside Housing

14/07/11

Affordable Rent bids to be published this week

24dash.com

13/07/11

Borrowing cap for councils to stay

Inside Housing

25/06/11

HRA reform could halt demolition

Inside Housing

23/06/11

Housing association raises £140 million through retail bond

Inside Housing

20/06/11

HRA reform could create £54bn boost

Inside Housing

17/06/11

HRA reform could release £50bn

Public Finance

17/06/11

Transfer of Islington's stock to housing association 'not viable'

Inside Housing

27/05/11

Housing finance: what does the future hold?

Guardian Website

19/05/11

Banks to agree terms of HRA exit loans

Inside Housing

14/04/11

Councils reject HRA conditions

Inside Housing

25/02/11

Excess baggage

Inside Housing

18/02/11

Shapps: 150,000 council homes to be brought up to standard

CLG

17/02/11

Shapps unveils housing finance 'revolution'

Inside Housing

05/02/11

Half Measures

Inside Housing

03/02/11

Councils concerned by HRA settlement plans

Inside Housing

03/02/11

Dacorum BC confirms homes will not be transferred to housing association

Watford Observer

17/01/11

Treasury to keep bulk of RTB receipts

Inside Housing

13/12/10

Grant Shapps: A fairer future for social housing

CLG

22/11/10

Council house tenants hit by £225 rise in great ConDem Rent Robbery

The Mirror

13/11/10

Decent homes cash opened up to councils

Inside Housing

11/11/10

Housing: Misery beckons on the home front

Guardian

30/10/10

Letter from Grant Shapps - Spending Review - Settlement for Housing

CLG

20/10/10

Lib Dem leader urges council to reconsider stock sell-off amid HRA reform

24 Housing

15/10/10

Social housing PFIs have wasted millions in London

Evening Standard

30/06/10

PFI in housing

National Audit Office press release

25/06/10

Government will overhaul unfair council house finance system

CLG

08/06/10

Councils face HRA reform debt charge

Inside Housing

14/05/10

Councils back new finance reforms

Inside Housing

30/04/10

£25 billion reform would leave councils with ALMOs better off

Inside Housing

16/04/10

Debt finance sums are misleading

Inside Housing

16/04/10

Analysis of debt figures for HRA reform

Inside Housing

01/04/10

Deal or no deal?

Inside Housing

01/04/10

Majority of councils back HRA overhaul

Inside Housing

01/04/10

Revealed: HRA winners and losers

Inside Housing

01/04/10

Hopes and fears

Inside Housing

29/03/10

Councils voice fears over HRA debt plans

Inside Housing

26/03/10

Government offers local authorities chance to keep revenue from council houses

The Guardian

26/03/10

Councils face £25bn charge for financial freedom

Inside Housing

25/03/10

Birmingham slams unfair rent rises

Inside Housing

05/03/10

Healey writes off Bykers £44m debt

Inside Housing

05/03/10

Energy companies to fund efficiency work

Inside Housing

02/03/10

Government chews over HRA sweetener

Inside Housing

12/02/10

Scotland mulls rise in new build grants

Inside Housing

05/02/10

CIH issues reform or bust warning

Inside Housing

29/01/10

Scots wha hae

Inside Housing

29/01/10

Decent effort

Inside Housing

22/01/10

More funding needed to complete Decent Homes

Inside Housing

22/01/10

Indecent Proposal

Inside Housing

22/01/10

LGA ditches debt demand

Inside Housing

22/01/10

Debt deal must be done

Inside Housing

22/01/10

Landlords lambast rent subsidy cuts

Inside Housing

15/01/10

Moving the goalposts

Inside Housing

08/01/10

Councils face new year rent headache

Inside Housing

08/01/10

Housing income for councils will remain flat in 2010

Inside Housing

18/12/09

Subsidy shake up revealed in February

Inside Housing

11/12/09

One year on (TSA)

Inside Housing

04/12/09

Future of ALMOs in limbo amid subsidy reform confusion

Inside Housing

20/11/09

Welsh instigate housing finance review

Inside Housing

18/11/09

Lambeth sells 10 homes for £1.68m

Inside Housing

13/11/09

Bored or inspired?

Inside Housing

06/11/09

CIH: Europe has the right ideas on debt

Inside Housing

06/11/09

Councils sales receipts fall 66%

Inside Housing

06/11/09

A debt and a hard place

Inside Housing

02/11/09

Teather: write off debt

Inside Housing

23/10/09

MPs back calls to scrap housing debt

Inside Housing

21/10/09

HRA campaigners urge government to write off debt

Inside Housing

06/10/09

Lib Dem motion condemns decent homes cut

Inside Housing

23/09/09

Is stock transfer dead?

Inside Housing

18/09/09

Backing the wrong horse

Public Finance

18/09/09

Institute warns councils over HRA debt plan

Inside Housing

11/09/09

Institute backs plans to reallocate £17bn housing debt

Inside Housing

09/09/09

Town halls bid to build next generation of council housing

LGA

04/09/09

Lets talk horse sense on housing

Public Finance

04/09/09

£18bn write-off unrealistic

Inside Housing

21/08/09

A fairer footing for council housing

The MJ

12/08/09

Saddled with debt?

Public Finance

06/08/09

Fury at PMs raid on decent homes cash

Inside Housing

24/07/09

I.O.U. £18 billion

Inside Housing

24/07/09

Shake-up touches all bases

Inside Housing

24/07/09

Tenants and councils concerned by HRA plans

Inside Housing

22/07/09

Government refuses to write off housing debt

Inside Housing

22/07/09

Free at last

Inside Housing

22/07/09

Proposals set out to reform council housing finance

Inside Housing

21/07/09

Reform of council housing finance: Consultation

CLG

21/07/09

Historic housing debt must be wiped

Inside Housing

17/07/09

Councils get fast track to freedom

Inside Housing

17/07/09

Healey plays a cunning game

Inside Housing

17/07/09

Devil is in the detail of HRA reform

Inside Housing

10/07/09

Cast off your shackles

Inside Housing

10/07/09

Man versus machine

Inside Housing

10/07/09

Subsidy changes to end stock transfer

Inside Housing

10/07/09

Give them a big hand

Inside Housing

03/07/09

Reviled council cash system bites the dust

Inside Housing

03/07/09

Housing revenue account finally to be abolished

Public Finance

02/07/09

Housing Finance Reform

LGA

02/07/09

Housing Revenue Account Subsidy Changes - Briefing

ARCH

01/07/09

Review of Council Housing Finance - ministerial statement

DCLG

30/06/09

Funding overhaul would deliver 300,000 homes

Inside Housing

16/06/09

Gordon Brown to pledge £72 billion for more council homes

The Mirror

16/06/09

No contest

Inside Housing

12/06/09

Tenants will be the losers in the latest battle of the Almo

Guardian

18/05/09

Self-financing is unaffordable

Inside Housing

15/05/09

Pot of gold

Inside Housing

08/05/09

Council building fund 'not enough'

Inside Housing

22/04/09

Nationalising debt to repay tenants

Inside Housing

03/04/09

The single-minded conversation (interview with Margaret Beckett)

Inside Housing

20/03/09

Is Brown serious about social housing?

The Guardian

15/03/09

Councils calls for debt relief to aid building work

Inside Housing

02/03/09

Concrete promises?

Public Finance

25/02/09

Plan B

Inside Housing

20/02/09

'It's a no-brainer'

Inside Housing

20/02/09

Councils face cash shortfall as right to buy sales plunge

Inside Housing

13/02/09

Would like to meet&

Inside Housing

13/02/09

Brown opens the door for councils

Inside Housing

06/02/09

Break down housing barriers

Local Government Chronicle

05/02/09

Q&A: Council housing

Times

30/01/09

Council cannot afford new homes

BBC

15/01/09

'Let's build our way out of recession'

Unite @ctivist

27/11/08

One rule for us, by Steve Wilcox

Public Finance

14/11/08

Cap on council rent rise derails convergence plan

Public Finance

07/11/08

CLG outlines rent rise proposals

Inside Housing

30/10/08

Getting off the ropes

Inside Housing

23/09/08

Housing professionals call for HRA to be axed

Public Finance

12/09/08

The review of housing finance

Inside Housing

11/09/08

Labour review advocates key role for councils

Inside Housing

11/09/08

Between a rock and a hard place

Inside Housing

29/08/08

Government pockets £200 million in council rents

Daily Mirror

28/08/08

Building Up Hope

The Guardian

13/08/08

Councils predict 5m list for social housing

09/08/08

Poll shows dissatisfaction with HRA

Inside Housing

08/08/08

Campaigning council plans to use CLG officer in HRA protest

Inside Housing

01/08/08

Tenants deserve their say in review

Inside Housing

01/08/08

Why should our rent pay old debts?

Inside Housing

01/08/08

Best efforts have not been enough

Inside Housing

01/08/08

Missing the mark

Inside Housing

01/08/08

About face for Labour

Inside Housing

01/08/08

Channels are open for tenants to use

Inside Housing

25/07/08

Getting involved in the HRA review

Inside Housing

19/07/08

Tenants must not be sidelined

Inside Housing

11/07/08

Tenant voice must be heard

Inside Housing

04/07/08

Whitehall urged to tear up subsidy rules

Inside Housing

04/07/08

Tenants 'excluded' from review of council housing finances

24dash

27/06/08

Housing director urges action day over subsidy

Public Finance

27/06/08

Take to the streets over tax on tenants

Inside Housing

20/06/08

Take to the streets over tax on tenants

Inside Housing

20/06/08

'Increase number of rented homes' - MPs

LGA Firstonline

18/06/08

£500m stealth tax hits council tenants

Local Government News

17/06/08

Sixty authorities join forces to oppose stealth tax' on tenants

Inside Housing

16/06/08

Rent asunder

Guardian

04/06/08

Use right to buy revenue to build more social housing, MPs urge

Public Finance

30/05/08

MPs call for 50,000-a-year boost to social housing stock to cut waiting lists

24dash

21/05/08

1m more' on housing waiting list

BBC

16/05/08

Swift abolition of HRA on the cards

Inside Housing

15/05/08

Sixty authorities join forces to oppose stealth tax on tenants

Inside Housing

15/05/08

Councils press for urgent housing subsidy overhaul

Public Finance

09/05/08

Critics slam lack of transfer progress

Inside Housing

08/05/08

Tenant takes government to court over HRA cash

Inside Housing

18/04/08

Brown suffers big backbench revolt over council house repairs

Guardian

01/04/08

The great escape

Inside Housing

21/03/08

Funding regime will leave councils unable to make ends meet

Inside Housing

14/03/08

Councils to be empowered to keep money raised from rent

Public Finance

14/03/08

Model to attract private funds could pay for new council homes

Inside Housing

10/01/08

Billion pound tenant tax

Inside Housing

10/01/08

Two councils preventing revenue account surplus

Inside Housing

07/12/07

Tenants plan 'fight to the bitter end' to keep housing under council control

24dash

22/05/06

Receipts pooling gets go-ahead

Inside Housing

22/09/03

Inovation Imperative

Inside Housing

31/10/02

Robbing Peter to pay Paul

Inside Housing

10/10/02

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