Scottish Government

Statistical Bulletin HSG/2004/3
Local Authority Housing Income and Expenditure 2002-03 to 2004-05

August 2004 (Revised October)

This document is also available in pdf format (132k)

1. This report provides factual information on local authority housing income and expenditure. The source of the data is local authorities Housing Revenue Account (HRA) returns submitted to the Scottish Executive in March 2004. Information on rent arrears ( table 10) is taken from a separate rent arrears return. Information on estimated capital expenditure 2004-05 ( table 15) is taken from the returns submitted for the monitoring of the Prudential Regime (HRA-CPR Q1). Three councils Dumfries & Galloway, Glasgow City and Scottish Borders transferred their housing stock in early 2003. Data for these councils is contained in tables for 2002-03 but not for 2003-04 or 2004-05. As a result there can be no meaningful comparison between overall average figures in 2002-03 and 2003-04.

Tables for 2003-04 and 2004-05 are based on 29 Councils.

2. A summary of HRA income and expenditure for 2003-04 and 2004-05 is shown at table 1. A detailed breakdown of this is provided at table 2.

Stock levels

3. The average stock levels by individual local authorities are shown in table 3. The highest estimated stock level for 2004-05 is recorded in North Lanarkshire at 41,317. Orkney Islands is the lowest at 850.

Rents

4. The average rents charged by individual authorities are shown in table 4. The highest rent level in 2004-05 at 52.80 per week is recorded in Inverclyde. Midlothian's rents remain the lowest in Scotland at 33.77 per week.

5. In 2004-05 local authorities estimate that the rent rebate subsidy will total around 532 million (almost 63% of total rental income). Table 5 illustrates the proportion of rental income raised through rent rebates in each authority.

Management and Maintenance (MM) Expenditure

6. MM expenditure is made up of expenditure on supervision and management (mainly staffing costs) and the repair and maintenance of the housing stock. The average MM expenditure of Scottish local authorities in 2004-05 is estimated to be 1,399 per house. South Ayrshire has the highest estimated expenditure at 1,688 per house, with Comhairle nan Eilean Siar the lowest at 1,020 per house ( table 6). Differing accounting practices mean that the figures shown for individual authorities may not always be directly comparable.

7. Within overall MM expenditure:

7.1 average supervision and management (SM) costs in 2004-05 are estimated to be 491 per house. SM costs range from 882 per house in West Lothian to 199 in Shetland Islands ( table 7). As local authorities differ in the extent to which central administration costs are included in SM expenditure, again individual figures may not always be directly comparable.

7.2 overall average expenditure on repairs and maintenance (RM) is estimated to be 907 per house in 2004-05 ( table 8). Highest RM expenditure is in Falkirk at 1,193 per house, the lowest is recorded in West Dunbartonshire at 633 per house.

Rents Lost Because of Un-let Houses

8. Total rents lost in 2004-05 are estimated to be around 27.8 million, 3.29% of total rental income ( table 9). The figures for some councils include rents lost on properties lying empty while awaiting demolition.

Rent Arrears

9. Total rent arrears are shown for 2003-04 at 57.3m these represent 5.3% of standard rental income. Details on rent arrears and rent arrears written off are provided in tables 10 and 11. Again direct comparisons between councils may not always be meaningful due to different policies on rent write off.

Housing Revenue Account Surpluses

10. Tables 12 and 13 provide details of housing revenue account surpluses. Councils continue to use revenue income to boost their capital expenditure. CFCR (capital funded from current revenue) is estimated to be 95.7 million in 2004-05. Revenue balances of over 49 million were carried forward from 2003-04 to 2004-05.

Capital Debt

11. The total HRA debt in 1 April 2004 was estimated to be 2,117 million. The average debt per council house is now 5,483 per house. There continues to be a wide disparity between councils, Average debt per house in Angus, West Lothian, Midlothian, East Lothian, North Lanarkshire and Orkney is less than 3,000, compared to Shetland's debt of 26,164 per house ( table 14).

Capital Expenditure

12. Table 15 illustrates the level of authorities' total housing capital expenditure financed from all sources (i.e. new borrowing, usable receipts and capital funded from revenue income).

The Prudential Regime for local authority capital finance, including housing, was introduced in April 2004, allowing local authorities to decide for themselves what is an affordable and prudent level of borrowing in their circumstances. The Scottish Executive no longer issues section 94 consent to LAs to incur capital expenditure or borrowing allocations. The requirement for local authorities to use a proportion of housing capital receipts to repay existing debt ('set aside') was also abolished from April 2004.

Capital expenditure is forecast to increase in 2004/5; some authorities have increased their borrowing levels under the Prudential Regime, whilst others are using more capital receipts to fund investment in housing. The Scottish Executive regularly monitors actual expenditure by local authorities against their forecast figures.

Capital Receipts

13. Total HRA capital receipts, arising from the sale of council houses, are shown in table 16; these are estimated (at March 2004) to amount to 217m in 2004-05.

Scottish Executive Development Department
August 2004

Tables

Table 1 Consolidated Housing Revenue Account Income and Expenditure
Table 2 Housing Revenue Account Income and Expenditure
Table 3 Council House Stock
Table 4 Average Rents ( per house per week) in Descending Order
Table 5 Rental Income and Rent Rebate Subsidy
Table 6 Average Management and Maintenance ( per house per year) in Descending Order
Table 7 Average Supervision and Management Expenditure ( per house per year) in Descending Order
Table 8 Average Repairs and Maintenance Expenditure ( per house per year) in Descending Order
Table 9 Rents lost (as a result of un-let houses) as a Percentage of Standard Rental Income in Descending Order
Table 10 Rent Arrears as a Percentage of Standard Rental Income in Descending Order
Table 11 Rent Arrears Written Off (RAWO) as a Percentage of Standard Rental Income in Descending Order
Table 12 Housing Revenue Account Surpluses: 2000-01 to 2004-05
Table 13 Housing Revenue Account Surpluses: 2003-04 Near Actual and 2004-05 Budgets
Table 14 Outstanding Debt
Table 15 HRA Gross Capital Expenditure (inc. Capital Funded from Revenue (CFCR))
Table 16 HRA Capital Receipts