Savills Affordable Housing Consultancy was appointed by the Local Government Association (LGA), the Association of Retained Council Housing (ARCH) and the NFA to undertake research into various aspects of the policy, financial and technical operation of the Housing Revenue Account.

This briefing for MPs summarises the main findings from three reports which cover the Right to Buy, social landlords’ expenditure and social landlords’ income. 

The research points to the need for the following:

1. The Government needs to review the long-term financial stability of the Housing Revenue Account. 
2. Social landlords should be permitted to increase rents by CPI +1% from 2024 and a longer term review of rent setting should be undertaken by the government to place the sector on a more secure financial footing.
3. Councils should be able to use up to 50% of retained Right to Buy receipts on social housing to make new build viable for councils struggling to cover additional borrowing costs and other commitments.
4. Affordable/Social Housing grant funds should be made available for replacement housing as well as net additions on regeneration sites to remove a significant barrier to brining schemes forward to replace stock if no longer fit for purpose.
5. Right to Buy discounts should be reviewed to ensure they allow for one-to-one replacements for social housing that is sold, without dampening demand for the scheme.