Pressure eases on HRAs but nearly half of councils predict cuts to new build programmes

While this is down from 60% last year, the LGA highlighted the finding as “concerning” given the pressure on councils to build.

Almost all councils still believe raising rents will be needed to balance their HRAs, however there has been a fall in the proportion estimating cuts to services will be needed.

Last year, two in three finance chiefs believed they would need to reduce real terms spending on supervision and management, and investment in existing stock paid for out of the HRA.

Fewer council chiefs believe cuts to repairs and maintenance will be brought in, from 57% last year to 35% this year.

Tom Hunt, chair of the inclusive growth committee at the LGA, said: “It’s good news that the outlook on social housing finance has improved for councils since last year.

“New measures like a 10-year rent settlement and rent convergence, that councils have long called for, are important steps forward but local government still faces significant challenges.

“That nearly half say that pressures on their social housing budget will impact their ability to build more new homes is concerning.

“For the government to meet its ambition of 1.5 million homes, sufficient social housing supply is a key part of building the homes that our communities need.

“Supporting councils with the resources that they need to build, both financial and non-financial, will be crucial.”  

The survey also showed that seven in 10 finance chiefs believe their councils will be able to balance their HRAs, and six in 10 are confident that homes can continue to be maintained and repaired this year, up 10% on the previous year.