Independent think tank voices concern over council house demolition.
The new system of self-financing could deter authorities from demolishing old stock, a fringe session at the Chartered Institute of Housing conference in Harrogate has heard.
Accountancy firm Pricewaterhouse Coopers and think tank The Smith Institute launched a study, Making the most of HRA Reform. The report argues that the move to self-financing, which will lead to councils being able to keep rental income in exchange for taking on debt, could produce £54 billion of investment over the next 30 years.
But Phil Davies, chief executive of Derby Homes, said that his organisation has pre-war estates heading towards non-decency. He said: “One negative of what is a positive story is that it freezes up properties. If we demolish them we carry on paying that debt. It looks like we want to have our cake and eat it. There is a danger for those councils, and there are many of them, that still have 1930s estates and have plans for them, I don’t know how we can get round that.”
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