Mark-Baigent

HRA Reform: Seizing the Opportunities Mark Baigent Project Director Royal Borough of Greenwich

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HRA Reform principles • • • • • • •

National pooling of rent income ends Historic debt redistributed between authorities Each local HRA becomes self-financing Future above inflation rent increases assumed Cost efficiencies + increased income = local surplus Potential to borrow but subject to imposed debt ceiling Enables 30 year business planning and more commercial asset management portfolio approach • Local HRA still ring-fenced from General Fund • Inflation risk and investment risk managed locally

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Opportunities • • • • • • • • • •

Increased condition standard for existing stock (DH+) Retrofit energy efficiency and generation (e.g. PV) Estate environment and security improvements Extensions and conversions to reduce over-crowding New build within HRA on available land assets Estate regeneration buy-back and rehousing costs Purchase land for future new build programme Purchasing second hand and new build homes Joint venture development with RPs or private partners Providing grants/loans as incentives to tenants to move into low cost home ownership (e.g. mortgage deposits)

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How are we seizing the opportunities • • • • • • • •

Robust 30 year view of stock investment needs Investment options appraisal toolkit (Navigant) Demonstrating business case and social cost/benefit Focus on enabling wider regeneration and growth Expanding existing new build and conversion programme Accelerating estate renewal priorities Exploring innovative partnership and joint venture options Potential joint procurement between authorities

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Risks ahead • Right To Buy “revitalisation” may stifle re-investment flexibility • Debt ceiling fails to reflect true borrowing capacity • Debt ceilings may be further constrained unfairly • Pressure to blur the local HRA ring-fence • Political reality of assumed above inflation rent increases

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