HRA Debt Cap
The housing revenue account (HRA) is an account into which all of the rent that is paid by our tenants goes. This is the money that then enables the council to carry out planned maintenance to those homes we own, and what funds new kitchen installations, roof and boiler checks and so on.
It also enables us to build new council homes. However, there is a level at which our account is capped (known as the HRA Debt Cap) – meaning that we cannot borrow more money (extend our mortgage if you like) against the homes that we own once we reach a certain limit of borrowing.
You may have heard that the Prime Minister has recently announced that the government intends to scrap the debt cap. We don’t know yet what that entails specifically, but we are hopeful that we will be able to build more new homes. We will give you specific details in due course.