Birmingham pledges £300m for council housing

Published by Ross Macmillan for 24dash.com in Housing and also in Communities, Local Government

Birmingham City Council has approved a three-year council housing investment programme of £297m up to 2015.

In the next financial year (April 2012) the council - which owns some 65,000 homes - said £98m will be spent including £59m on a continuing programme to maintain properties at the Decent Home Standard. 

The council said it will spend £36m on the provision of new affordable homes with £3m on an adaptations programme to promote independent living for tenants in their properties.

As well as upgrades to kitchens, bathrooms and heating systems, it will also embark on a programme to upgrade its concierge and security systems in tower blocks and continue its fire protection work in multi-storey properties.

The investment, it says, is a result of the flexibilities that are available to the council as part of the new Housing Revenue Account (HRA) self financing framework being introduced in April 2012.

As part of the deal to go 'self-financing' it will have to take on a slice of the national housing debt from when its stock was first built. This equates to £336m.

However, in return, the council will be allowed to keep all its rental income instead of it being pooled and distributed by central Government. This allows it to create a long-term business plan and borrow cash on the back of its projected rental income.

The investment, it says, will ensure that previous assets are protected and tenants continue to see key elements of their properties being replaced.

Cllr John Lines, Birmingham City Council’s cabinet member for housing, said: “First and foremost this investment is good news for our tenants.  In addition, the joint lobbying of members/tenants secured resources for an adaptations programme. 

“The council’s proposals for 2012/13 and beyond will allow tenants to benefit by replacing essentials in their home including central heating, windows, kitchens and bathrooms. 

“The plans will ensure that the investment of £800m that we have already completed will be protected for the future.”

The investment will also allow the provision of 232 new affordable homes for the council.

The council announced earlier this month plans to freeze council rents until 2013.