Barnet Council to Sell Off Housing Stock to Raise £10 Million

Barnet Council is set to sell off some of its housing stock to generate £10 million in capital, according to a recent decision made by the council's cabinet. The move is part of the Housing Revenue Account (HRA) Business Plan 2025, which requires Barnet Homes to raise the funds through selective disposals of HRA properties. The decision was made at a Cabinet meeting held on Tuesday 16 September 2025.

Facing a projected £55.7 million funding gap, the council aims to use the capital receipts from these sales to offset HRA borrowing requirements¹. According to the meeting agenda, the HRA Disposal Strategy outlines the plan for selectively disposing of London Borough of Barnet HRA properties over the next five years, from 2025 to 2030.

The council will use an Asset Appraisal Performance Scoring Matrix (APSM) to identify underperforming properties. The HRA Disposal Strategy report pack states that the selection of stock to dispose should also aim to reduce expenditure against the HRA and remove poor quality homes from the HRA portfolio. Units have been identified in the following categories:

• Freehold sale of blocks with no Housing Revenue Account (HRA) tenants, just leaseholders or shared owners.
• Flats in Barnet Homes managed blocks with only 1 remaining tenant. Subsequent sale of freehold of block upon disposal of remaining flat.
• High scoring properties identified through the Asset Performance Scoring Matrix (APSM)
• Flats that are unable to attain EPC C and are owned leasehold.
• Houses that cannot achieve EPC C.
• Timber framed houses (un-remediated fire safety).
• Properties which are categorised as hard to let due to the location, size, or type of unit.

Councillor Ross Houston, Deputy Leader and Cabinet Member for Homes & Regeneration, is named as the author of the report regarding the HRA Disposal Strategy. The report pack states that Barnet Homes is required to raise £10million capital as part of the Housing Revenue Account (HRA) Business Plan 2025, through disposal of HRA stock. Disposal proceeds are 100% capital receipts and are to be used to offset HRA borrowing requirements.

Alternative strategies were considered before deciding to sell off housing stock. The HRA Disposal Strategy report pack considered the alternative option of Disposing of properties that do not have high repair and maintenance costs in accordance with the APSM when they become void. This option was rejected because this would not make an impact on the reduction of spend against the HRA.

The Cabinet has delegated authority to the Head of Strategic Housing (Growth Team, Customer and Place), in consultation with the Cabinet Member for Homes & Regeneration, to approve the sale of selected properties with a sale price exceeding £1 million. This delegation aims to streamline the process, as such sales would otherwise require a separate report to the Cabinet due to being classified as Key Decisions.

The decision comes as Barnet Council faces ongoing financial pressures. At the same meeting, the Cabinet discussed the council's overall financial position, including a projected funding gap. These financial challenges have prompted the council to explore various avenues for generating revenue and managing its assets more efficiently. Criteria for selection include: high maintenance cost; significant investment required to achieve EPC C and difficult to let.