Review of council housing finance and rents policy

The review of council housing finance and rents policy was launched by the minister for housing in March 2008, and is a joint review between communities and local government (CLG) and HM treasury. It was known initially as the 'review of the housing revenue account (HRA) subsidy system' but has been re-named to reflect its wide scope to work towards a solution for a long-term sustainable system for financing council housing to be put in place, but also to inform a policy framework for rents and standards for the regulator of affordable housing.0

It is this second element of the review that the CML and members involved in lending to the affordable housing sector are interested in. It is essential that the sector has in place a sufficiently independent regulator able to balance policy objectives with its overall role of ensuring financial viability in the sector. Also that housing associations themselves have the flexibility and freedom needed to ensure their individual financial health and governance remains sound.