Northampton – Housing Account takes a £20.5 million hit

Northampton Council Housing Revenue Account takes a £20.5 million hit

Rental income, by far the largest single budget within the HRA, has previously been calculated in accordance with national rent policy. For 2016/17 the Welfare Reform and Work Bill legislates that rents in the social sector should decrease by -1% for the next 4 years. This is a move away from the 10 year policy of increasing rents using Consumer Price Index (CPI) plus 1 percentage point annually.  The proposal for rent decreases in 2016/17 is therefore -1% on average· across the housing stock.  This level of decrease changes the previous MTFP by reducing income· over the 4 years by £20m which poses a real challenge to future sustainability of the HRA. This impact on the original 2015/16 MTFP approved by Council in February 2015 is summarised in the table below:

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