North London council faced with £1.8bn HRA funding gap | News

North London council faced with £1.8bn HRA funding gap | News

The percentage of non-decent homes in Islington could increase fivefold over the next ten years if the council is unable to close a funding gap in its Housing Revenue Account (HRA). 

The north London council’s HRA is under significant pressure, according to a principal risk report submitted to its audit and risk committee this week. 

An estimated reduction of £60m is forecast annually, amounting to a funding gap of £1.8bn over the course of its 30-year business plan. 

According to council documents, Islington plans to take a “budget limited approach” for the next two years, with spending focused on essential building safety works and key asset maintenance, while council landlords “seek to gain traction with government about this issue”. 

Islington admitted that “sustained over a longer period, this approach will lead to deterioration in the condition of council homes”, with decent homes failure predicted to increase from 5% currently to between 20% and 25% over the next decade. 

>> See also: London housing leaders call for £2.2bn in extra funding to avert delivery slowdown

>> See also: Islington Council rapped over repairs, complaint handling and ASB 

“The known gap in the resources we need means that we must ensure that we drive value out of past investment, stretching our asset lives through repairs, until they are close to failure or have failed, before renewal,” the council said in a HRA business plan published earlier this year. 

“The council is working to identify opportunities to strengthen the HRA position, including lobbying Central Government for a more favourable rent settlement.”

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