Yvette Cooper, Chief Secretary to the Treasury, and Caroline Flint, Minister for Housing and Planning, have formally launched the review of the Housing Revenue Account Subsidy system.

Cooper, when she herself was Minister for Housing and Planning, announced the review in December 2007 as part of a wide ranging package of measures designed both to deliver the new homes the country needs, plus making existing homes fit for the 21 st Century.

The review will consider evidence about the need to spend on property management, maintenance and repairs. It will consider rent policy, including the relationship between council rents and rents set by other social housing providers.

The review commenced with a constructive debate on the draft terms of reference and, to take the work forward, the Ministers announced that the Chartered Institute of Housing would be hosting a number of expert workshops on the main themes of the review to gather evidence to inform the review.

Flint said: “The Housing Revenue Account Subsidy system is very complex and I know that people are unhappy with it because of its seeming unfairness and lack of transparency. I want the system to work so that it delivers for tenants and local authorities, and to get it right in the long term. This review, with the active engagement of key stakeholders, is essential to that.”