Written - Review of Housing Revenue Account Regime and Review of Social Sector Rent Policies

In October 2007, I commissioned a Task and Finish Group, chaired by Sue Essex, to review how the Welsh Assembly Government could best deliver on its commitment for more affordable housing, of the right quality and in the right place. The group reported in June 2008 with a number of key recommendations relating to the financial mechanisms underpinning our affordable housing programmes.

Over the past year, officials have worked closely with partners across the housing sector to implement these recommendations. Following close consultation with the housing sector, I have decided to commission a Review of the Housing Revenue Account (HRA) Regime and a Review of Social Sector Rent Polices. The independent reviews will aim to:-

• Provide an assessment of the current Welsh Assembly Government social rents and policies;
• Provide a review of options for reforming social rent policies; 
• Assess the current HRA regime;
• Provide a review of options for reforming the HRAS regime. 

The Rent Review will take as its starting point the analysis of current rent policies in Wales which has already been undertaken, updating the analysis to take account of the changing context as a result of the recession, the current rent restructuring policies in England, and the anticipated reforms to those polices following the English Council Housing Finance Review.  More generally it will compare social rent policies and levels in Wales with those in the rest of the UK.

The Housing Revenue Account /Housing Revenue Account Subsidy (HRAS) Review will compare the HRAS regime in Wales with the Housing Finance arrangements in England and Scotland and will take account of the implications of the Review of the Council Housing Finance in England.

In line with my commitment to work closely with all key partners in the housing sector, a Joint Steering Group will be established to guide the Reviews. This will ensure engagement with my officials as well as practitioners so that current realities are captured. A number of organisations and operational partners have been asked to nominate representatives to sit on the Steering Group.  I believe this approach will continue the new way of working I have established and ensure that we deliver the best solution for Wales.

Both reviews will be completed in 2010 and I will keep Members updated on the progress of the Reviews.