Peterborough pushes ahead with housing revenue account plan
0Peterborough City Council’s cabinet has voted to set up a housing revenue account (HRA) to allow it to expand the number of homes for rent it owns and take advantage of prudential borrowing opportunities.
This week’s decision came against the backdrop of ongoing work to deal with the borough’s homelessness problems, with the authority acquiring more existing properties to meet local need and invest in new-build homes.
Peterborough also noted the acceptance by central government in recent years that local authorities had a “major role” in encouraging housebuilding across all sectors.
It pointed to last year’s scrapping of the borrowing cap for councils with Housing Revenue Accounts (HRAs) that wished to fund new home building and on the availably of discounted Public Works Loan Board funding.
According to Ministry of Housing, Communities and Local Government guidance, councils that own more than 200 homes must have an HRA to record expenditure and income related to the provision of their housing stock.
Ring-fenced within the general account, the HRA will detail rents from tenants and service charges, as well as management and maintenance costs, major repairs and depreciation.
Peterborough said it would be able to accelerate the growth of its housing stock “providing hundreds of new affordable homes over the coming decades”.
Steve Allen, cabinet member for housing, culture and recreation, said the authority’s current homelessness strategy was having positive impacts but noted that a “significant increase” in affordable accommodation was require to turn the tide.
“By launching an HRA we would be able to meet the demands of our growing population and would ensure everyone in this city has a front door they can call their own,” he said.
“These homes would be used for temporary and long-term accommodation. They would be managed and operated by the city council, in a similar way in which council homes used to be operated in the 1960s and 1970s.
“They would provide accommodation in addition to the homes that are provided by our regional social landlords, which have provided – and will continue to provide – a good service to this city for years to come.”
Peterborough said it expected around 280 affordable homes to be delivered during this financial year with further affordable homes planned for delivery in the coming years.
These will be delivered through the combined build programmes of housing association Medesham Homes – a joint housing venture run by the council and housing association Cross Keys Homes – along with other social housing providers.
It said investment secured from the Cambridgeshire and Peterborough Combined Authority and the government’s housing delivery body Homes England are supporting 162 of the affordable homes expected to complete this financial year, with 58 receiving combined authority funding and 104 receiving Homes England funding.
It said that to date, the combined authority has committed to grant funding to a total of 221 new affordable homes in Peterborough across five schemes.
According to MHCLG guidance, councils do not need the government’s consent to set up an HRA; they merely need to inform the department of their plans.
A report to cabinet from Peterborough’s acting corporate director of resources Peter Walker said the timing of the authority’s application to set up an HRA would depend on progress with its updated housing strategy.
Walker noted that the move would be necessary once Peterborough’s council-home stock reached the 200 mark.
