Skip to main content

Council Housing: Sales

Volume 472: debated on Wednesday 5 March 2008

To ask the Secretary of State for Communities and Local Government what central government receipts were from council house sales in (a) St. Albans and (b) Hertfordshire in each of the last 10 years; and what percentage of total revenues from council house sales this represented in each area in each year. (189480)

The information requested is tabled as follows.

£000

Right to buy receipts

Set aside/pooling1

St. Albans

1997-98

2

3,643

1998-99

2

3,299

1999-2000

3659

5,318

2000-01

7,586

5,642

2001-02

3,426

2,522

2002-03

2003-044

9,615

2004-05

6,000

1,080

2005-06

3,343

1,185

2006-07

3,738

2,019

Hertfordshire5

1997-98

2

40,100

1998-99

17,268

34,305

1999-2000

43,871

60,362

2000-01

60,317

30,682

2001-02

50,621

54,704

2002-03

63,481

36,568

2003-044

70,048

2004-05

39,669

8,180

2005-06

26,835

10,794

2006-07

23,467

14,309

‘—’No data

1 The table does not provide the percentage of right to buy receipts set aside or pooled, because only the total amount of housing receipts set-aside/pooled is collected.

2 Information available only at disproportionate cost.

3 Data only available for one quarter.

4 No data on set-aside were collected for 2003-04 as a result of the transition to the pooling regime which was introduced in 2004-05.

5 For some years, the figures for Hertfordshire may actually be higher, because data may be missing from some of the authorities.

The table shows the total capital receipts from right to buy (RTB) sales of local authority dwellings in St. Albans and Hertfordshire. The figures for Hertfordshire are the aggregate of figures for the following 10 authorities that lie within that county: St. Albans city council, Broxbourne borough council, Dacorum borough council, East Hertfordshire district council, Hertsmere district council, North Hertfordshire district council, Stevenage borough council, Three Rivers district council, Watford borough council, and Welwyn Hatfield district council. The figures are net of discount and are as reported by local authorities.

The table also shows the value of capital receipts set-aside from 1997-98 to 2003-04 (the last year in which the set-aside regime existed). Under the set-aside regime, with-debt local authorities (that is, authorities with outstanding major long-term loans) were required to set-aside a proportion of the capital receipt generated by the disposal of a housing revenue account (HRA) asset, for the repayment of housing debt. Debt-free authorities (that is, authorities with no outstanding major long-term loans), on the other hand, were free to use the whole of their housing receipts for any capital purpose. When set-aside exceeds RTB receipts, it is because set-aside includes a proportion of receipts from not only RTB, but also whole-stock transfers, non-RTB dwelling sales, and sales of other HRA assets such as housing land.

From 1 April 2004 set-aside no longer applied to most housing receipts. All local authorities, both with-debt and debt-free, paid over or “pooled” the same amounts to the Secretary of State which would have formerly been set aside by with-debt authorities. Until the introduction of the pooling regime, set-aside was the mechanism that allowed a proportion of housing capital receipts to be redistributed for investment elsewhere. When an authority set aside an amount, the need for central government revenue support for that amount of borrowing through HRA subsidy disappeared, thereby enabling central to provide support for borrowing elsewhere.

The process of pooling is currently being reviewed as part of the wider review of housing finance.