The Chartered Institute of Housing (CIH) has offered to work with Government to help promote and introduce a new financial model for the management of council housing in England, from as early as April 2010.

The commitment is made in CIH's response to the Government's consultation, Reform of Council Housing Finance.

CIH believes the sector has now recognised the benefits of adopting a self-financing housing model, with initial reservations being replaced with a more positive assessment of a system which gives local people more opportunity to take financial control over their homes and communities.

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In its consultation response CIH highlighted the significant benefits and potential for a new financial system, which gives local authorities the power and flexibility to:

• Provide the same quality of homes and services enjoyed by tenants of housing associations
• Pursue the push for more properties to meet the decent homes standards, and extend the principle to decent communities
• Invest in energy efficiency to achieve carbon emissions savings
• Raise finance, in accordance with prudential rules, to address local housing issues

Abigail Davies, CIH Head of Policy for England, said: "To enable reform to move forward quickly, councils now need firm proposals on how debt will be dealt with. We need to make sure that councils can make self-financing viable and deliver clear benefits to tenants for the long-term. The best chance of success we have is if the existing debt - and no more - is included in the settlement with Government."

(CD/BMcc)