Security for your home during unsettling times
You will have heard announcements in past weeks about the financial security of Somerset Council.
This news might be unsettling, but we want to reassure Homes in Sedgemoor customers about how the Housing Revenue Account ensures your security and to explain that your home is not at risk from the wider issues with the council.
The Landlord Service is funded by the rent received from you and as such the income from council home rent can only be used to upkeep and manage the council homes.
Your council home rent is paid into a separate account from Somerset Council’s General Fund. It is called the Housing Revenue Account (referred to as the HRA).
The main features of the HRA are:
- it is a landlord account
- it is ring-fenced account so that management and maintenance costs, major repairs, loan charges are carried on, and not dependent on the council’s, wider financial situation.
- the main sources of income are from tenants in the form of rents and service charges
The rent money cannot and will not be used to fund shortfalls in other council services. Homes cannot be sold to help fund the other financial pressure of the council.
When the council talks about selling properties, this does not mean council houses. It relates to commercial properties that Somerset Council owns such as shops and office buildings.
If you report a repair our teams will still come out and maintain your home, if capital upgrades are due to your home this will still happen, our estates officers will continue to support you as normal.
In short, the service that you pay for will continue uninterrupted. The budget of the Landlord Service is secure into the future. If you have any questions, comments, or concerns please contact us.
- Full details of Somerset Council’s current situation can be found here.