Thursday, 02 September 2010

Housing income for councils will remain ‘flat’ in 2010

18/12/2009

Councils’ housing income and the amount they repay to the government will remain almost flat next year.

The government’s draft funding announcement for council housing in England, published last week, said management and maintenance allowances would rise by an average of 3.05 per cent in 2010/11 while major repairs allowances would increase by 2.25 per cent on average.

Guideline council rents will go up by an average of 3.1 per cent.

By comparison, council rents stayed at 3.1 per cent in April while management and maintenance allowances increased by 2.95 per cent and major repairs allowances grew by 2.75 per cent.

Steve Partridge, director of financial policy at the Chartered Institute of Housing, said the draft figures meant councils would hand about £100 million back to Whitehall in both 2010/11 and 2009/10.

Council rents will now have to converge with government targets by 2012/13 rather than 2023/24 as a result of the change in rent from 6.1 per cent, proposed last year, to 3.1 per cent.

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