After taking into account costs such as administration incidental to the disposal and improvements to the asset in the three years before the disposal, local authorities are required to pool 75 per cent. of receipts arising from the disposal of dwellings and 50 per cent. of receipts arising from the disposal of other housing assets. However, housing receipts arising from sales that are neither right to buy nor to any owner-occupier can be retained by local authorities provided they are used for affordable housing or regeneration projects. Furthermore, we have consulted on provisions which will effectively allow authorities to retain all RTB receipts, provided they are used for the same purposes, if they arise from newly-built or newly-acquired dwellings.
Local authorities are required to pool receipts arising from the disposal of easements over land held in their housing revenue accounts, where such a disposal constitutes “the disposal of an interest in housing land” as defined in regulation 12(1)(a) of the Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 (SI 2003/3146 (as amended)). Whether it is a disposal that falls within the regulations is a matter for the local authority to determine, subject to the scrutiny of its auditor. If the authority considers that the easement is an interest in housing land, then the receipt is poolable at a rate of 75 per cent. if the easement is over land that constitutes a dwelling. If the easement is over any other housing asset, then the receipt is poolable at 50 per cent.
In certain circumstances, it might be possible for an authority to retain all the receipt, provided the local authority uses the receipt for affordable housing or regeneration projects.