Council housing finance reform

Council housing Council housing finance reformfinance reform

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Council housing Council housing finance reformfinance reform

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Ian DoolittleIan DoolittlePartner

Trowers & Hamlins

The rules

■ Ministerial powers ■ Reopening the settlement ■ The Borrowing Cap■ Regulation■ The ring fence

The resources

■ Government rent policy – present and future ■ Increased allowances “incorporated”■ Disabled adaptations support■ Separate Decent Homes catch-up funds

The debt

■ ‘Payment’ (and ‘repayment’) authorities■ Public Works Loan Board – only?■ Bonds■ Bridging loans

Borrowing

■ The cap – and headroom■ Notional debt windfall ■ New build and other exceptions■ Looking ahead

Disposals

■ Statutory regime still applies■ New freedom - how helpful?■ Trickled voids■ RTB receipts

LSVT

■ Financial comparability with self-financing■ “Taxation impacts” – VAT?■ “Rigorous VFM assessment”■ Tenants’ “Right to Transfer”■ New guidance promised

Estate or “special” transfers

■ Areas/types of property - n.b. sheltered schemes■ Ballots?■ RPs’ involvement■ Special vehicles?■ Trickling voids?

Asset management

■ No incentives now to keep “wrong” stock■ Keeping receipts – n.b. resolutions■ Freedom to dispose without CLG consent?

ALMOs

■ Increased pressure■ Settlement is “ALMO blind”■ Governance support?■ Refashioning the relationship

PFI - type structures

■ Fee available - semi-assured■ Securitisation?■ Enough headroom?■ Servicing debt

Outsourcing

■ A defined business ■ Benefits from external competition?■ Joint housing management and repairs/ maintenance

packages?

Ian Doolittlet +44 (0)20 7423 8415e idoolittle@trowers.com

Questions and further information

Council housing Council housing finance reformfinance reform

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