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Housing Revenue Accounts

Volume 507: debated on Tuesday 9 March 2010

To ask the Secretary of State for Communities and Local Government if he will bring forward proposals to allow with immediate effect local authorities to spend all their right-to-buy receipts ring-fenced on housing revenue account housing. (320809)

The proposal to allow local authorities to retain capital receipts from the sale of housing assets, including under Right to Buy arrangements, was included in the Government’s consultation paper “Reform of council housing finance” issued in July 2009. This is directly linked to the main proposal made in that paper to move towards a new self-financing arrangement for councils which own social housing. I expect to make a further announcement to provide more detail on the self financing package of proposals in the next few weeks.

We have already announced that newly built or acquired council homes can be excluded from the Housing Revenue Account Subsidy system through an agreement with the Secretary of State, which would allow the local authority to keep the full receipt should those homes subsequently be sold.