WIREDGOV

The Welsh Government has brokered an historic agreement with the UK Treasury which will result in greater investment in Wales’ council housing.

From 2 April, the eleven local authorities in Wales which have retained their social housing stock, will exit the UK Government’s Housing Revenue Account Subsidy (HRAS) system and become self-financing.

Councils will be given more powers over their housing stock which will enable them to keep all the rental income they receive from tenants.

Councils will have control over their housing assets which are forecast to generate around £18 billion of rental income over the next 30 years.

This will be invested locally to help improve existing homes and build hundreds of new council homes.

Communities and Tackling Poverty Minister, Lesley Griffiths, said yesterday:

“Many hours of complex negotiations and a great deal of hard work has gone into securing this agreement, which will have a very positive impact on Wales’ council housing stock.

“Each council will be better off every year and will enjoy new freedoms which will provide them with the incentive, flexibility and control to invest further in their housing stock.

“The increase in councils’ housing revenue as a result of this deal will allow them to improve their existing properties and build new council houses. Today’s historic deal will, therefore, also have a direct impact on tenants who will benefit from living in more comfortable, higher quality homes.”

The HRAS exit follows the Welsh Government’s recent announcement of their intention to end Right to Buy, which allows eligible social housing tenants to buy their home at a discount of up to £16,000. The policy has resulted in the sale of 138,423 Welsh council homes since 1981 - a 45% reduction in the social housing available when the policy was first introduced.

The Minister added:

“We are taking action to protect and enhance our social housing to ensure the people who need it most have access to a good quality, affordable home.”

The HRAS Exit has been widely welcomed by councils. Cllr Dyfed Edwards, Welsh Local Government Association spokesperson for Housing said:

“Welsh Councils are looking forward to the end of the HRAS system and the introduction of greater freedoms in how Councils manage and invest in their housing stock. The 11 Councils involved have worked closely with Welsh Government in achieving this agreement and are excited about the investment opportunities that will result from it.”