Wokingham Borough Council to invest in homes0
Wokingham Borough Council’s housing budget for 2012/13 is being set up to invest almost £5million in the future of its homes, despite servicing a £95.4million debt that will be taken on to buy the houses from central government.
Historically, the council has had to pay some 44 per cent of its tenants’ rents to central government in the housing subsidy system, a total of £5.7million in 2011/12. The reform of the council housing finance system, under The Localism Act 2011, removes this subsidy system, which was used to pay for housing improvements nationally, and instead allocates debt to individual councils based on the value of their housing stock. The new system is known as ‘self financing’.
Wokingham Borough Council’s housing stock has been valued at £102million and the council is required to take on an additional debt of £95.4million to buy itself out of the subsidy system.