Response to the HCA's 'Decent homes Backlog Funding for Council Landlords'

London Councils welcomes the Government’s recognition that councils across England have ongoing Decent Homes funding needs and that funding is being made available over the course of this parliament to help meet them. Despite this we have concerns that the funding will not be enough to meet London’s backlog:

•  London Councils believe that around 16,000 homes nationally will not be covered by the funding available and therefore may not be upgraded.
• The outstanding backlog investment needed in London’s boroughs is estimated to be around £2.6 billion, significantly more than the £1.6 billion being made available for the whole country.
• Previously published proposals for the reform of the HRA subsidy system included an additional £3.6 billion of debt for England’s local authorities to cover the cost of Decent Homes works. We do not yet know if this debt is still proposed and, if it is, why the government may now making less than half this amount available for upgrade works.
• A streamlined bidding process looking only at costs per home may not take into account the higher costs associated with works in London, and therefore may disadvantage London’s boroughs.
• London Councils would like to see all funding made available for councils after 2012 for Decent Homes to be made in the form of debt reduction under the HRA subsidy system reform, rather than as grant funding.