BUSINESS ISSUES

What are Resource Accounting, Business Planning and Decent Homes - what are the issues?
From 2001-02 Resource Accounting  in the HRA, and the production of HRA Business Plans, will be introduced. The objective is to promote more efficient use of housing assets and the determination of maintenance and renewal strategies that assure the longer-term viability of Local Authorities' housing stock.

In its consultation paper, "Business Planning for Local Authority Housing with Resource Accounting in Place", the Government said: "The task for authorities is to set up systems (e.g. IT) and obtain appropriate information, primarily on stock condition, ... to derive the optimum balance between maintenance and renewal expenditure and the ... timing of work..."

Business Planning guidance states that the Business Plan must draw upon a wide variety of sources. These include:

Housing needs Local housing market Stock information

Tenant's views Background data Resource projections

The Government has set a target to deliver Decent Homes to all social sector tenants by 2010, and to reduce the number of social tenants living in non-decent homes by one third by April 2004, with most of the reduction taking place in deprived areas.

Asset or liability?
Are properties an asset or a liability? How do you create an effective maintenance strategy? Are voids a drain on financial resources? How do you provide acceptable housing choice for your tenants whilst still maintaining a viable business?