Housing Revenue Account (HRA) Statistics: Scottish Local Authority Housing Income and Expenditure 1997-98 to 2022-23 (near actuals) & 2023-24 (budgeted estimates)

4. Housing revenue income and expenditure (charts 2a, 2b) (table 1a) (table 3)

4.1 In 2022-23, rents from council houses account for 94% of revenue income to the HRAs. Supervision, management and repairs and maintenance of houses accounts for 71% of the expenditure, while loan charges (i.e. the cost of servicing housing debt) account for 25%.

4.2 Other sources of income for Local Authorities include rents on hostels and other properties such as garages or lock-ups and interest and other charges to tenants for special services. Money is also spent on things such as, upkeep of hostels (in some council areas) and other properties, writing-off rent arrears and paying council tax on void properties.

4.3 The cost of maintaining and managing housing stock is usually less than the income received i.e. council housing makes a revenue surplus at the Scottish level. This remaining income (the surplus) is used to fund capital investment in the council housing stock as part of the Capital Programme. The use of income in this way is known as Capital Funded from Current Revenue (CFCR).

4.4 In 2022-23 total HRA income (net) totalled just over £1.35bn across Scotland and total expenditure was just under £1.2bn. Further details of expenditure and income are set out in Chart 2(a) and 2(b) below. At year end, when income is compared to expenditure, there was a surplus of £180m and £191m was transferred to councils’ housing capital expenditure accounts and then invested on housing capital projects including new build council houses and enhancements to existing council stock (in addition to any day-to-day maintenance).