Housing revenue account
Produced in partnership with Alan Aisbett of Bryan Cave Leighton Paisner LLP and Alan Murdie of Council Tax Legal Services
Housing revenue account

The following Local Government practice note produced in partnership with Alan Aisbett of Bryan Cave Leighton Paisner LLP and Alan Murdie of Council Tax Legal Services provides comprehensive and up to date legal information covering:

  • Housing revenue account
  • HRA legislative frame work
  • Main features of HRA
  • Changes to the HRA since the LA 2011
  • The HRA self-financing settlement
  • Developments since the implementation of self-financing from October 2013
  • Pay to stay
  • Reduction in social housing rents
  • Right to buy
  • LHA—new initiatives
  • More...

This Practice Note covers the local authority housing revenue account (HRA) in England. Technically the HRA legislation embraces only local housing authorities (LHAs) as defined in section 1 of the Housing Act 1985 (HA 1985) and section 88 of the Local Government and Housing Act 1989 (LGHA 1989), which are required by LGHA 1989, s 74 to keep an HRA unless the Secretary of State has consented to them not doing so (usually where an LHA has transferred all of its stock). The account must show credits and debits arising from the LHA's activities as owners of land and houses, acquired or provided under powers contained in HA 1985, Pt II and kept in accordance with proper accounting practice required by LGHA 1989, s 88. Local authority decisions and decisions of the Secretary of State relating to an HRA are amenable to judicial review, typically for a declaration.

HRA legislative frame work

The HRA is part of the General Fund of an LHA. However, unlike other local authority activities such as education, highways, leisure, waste and social services, the service is accounted for separately. Typically for a local authority, housing will represent the largest class of asset and the largest driver for borrowing on their balance sheet. An HRA is maintained and monitored through a local authority’s existing accounting channels. Permission is not needed from the

Popular documents