Wandsworth Council approves huge investment in housing

Wandsworth Council’s Executive Committee has approved revisions to the Housing Revenue Account (HRA) business plan.

The Housing Revenue Account business plan is a rolling financial projection and fulfils a number of important functions. It informs strategic housing decisions and is a critical tool to secure and demonstrate the financial viability of the council’s management of the housing stock. It is also the basis for the four-year budget framework.

The Housing Revenue Account is financed through a number of sources including capital receipts, Section 106 funds, retained Right to Buy receipts and Leaseholder Major Works income, as well as borrowing.

The council is proposing to invest a total of around £561 million in housing projects over the next four years. This includes £172 million on repairs and improvements of existing buildings and £353 million on new council-led development, regeneration projects and environmental improvements.

Councillor Aydin Dikerdem, Cabinet Member for Housing, said:

“I am pleased to be recommending these adjustments to the Housing Revenue Account to our Executive Committee. Wandsworth Council is committed to delivering the best for our residents and the proposed programme affordable housing delivery will have a huge impact on people’s lives. In particular, switching all homes within the council’s 1,000 homes programme to council rent.

“We are proposing changes that will make available funds for ambitious projects across the borough while still managing the accounts with the care required in these uncertain times.”

The council’s total reserves start at £283 million and will generally reduce over the next 10 years as a result of the scale of investment proposed to an estimated £132 million. These reserve levels are largely supported by significantly increased levels of borrowing. The council are confident that, in light of these figures, the Housing Revenue Account continues to remain viable.