Council housing finance reform Sponsored by

Council housing finance reform Sponsored by

Ian Doolittle Partner Trowers & Hamlins

Council housing finance reform – opportunities and risks Ian Doolittle 21 June 2011

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?

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