Disposal of Council Dwellings

Do Council Dwellings that are being sold need to be moved into Assets held for Sale during the year?

When we receive notice of interest in purchasing a property we are moving into AHFS - i'm just wondrering if this step is really necessary and couldnt we just dispose of the property once sold?

Parents
  • Hi,

    I’d like to introduce myself as the editor of TISonline Local Authority Housing board. I have asked the board members for views on your question and their response is as follows: 

    "Not if being sold under RTB, but possibly correct under other circumstances.

    "The basis for the “other circumstances” test would be a matter for local interpretation, but it would seem sensible to treat a dwelling as “held for sale” once it no longer serves an operational purpose. In most cases this would mean treating a dwelling as “held for sale” when it is removed from the rent debit pending sale, and is no longer being used.

    "A vacant dwelling would remain an operational asset if is still being used, even temporarily - for example, if estate officers or tenants use it as a store, office or meeting room, but it would be a good idea to check this view against the accounting code of practice. Ultimately, it is for each authority to interpret and apply the requirements of the accounting code of practice, and so that (and the associated guidance) should be the touchstone when deciding on the approach to take."

    I hope that the above is helpful and I expect that our members would be willing to respond to any follow up questions you may have.

Reply
  • Hi,

    I’d like to introduce myself as the editor of TISonline Local Authority Housing board. I have asked the board members for views on your question and their response is as follows: 

    "Not if being sold under RTB, but possibly correct under other circumstances.

    "The basis for the “other circumstances” test would be a matter for local interpretation, but it would seem sensible to treat a dwelling as “held for sale” once it no longer serves an operational purpose. In most cases this would mean treating a dwelling as “held for sale” when it is removed from the rent debit pending sale, and is no longer being used.

    "A vacant dwelling would remain an operational asset if is still being used, even temporarily - for example, if estate officers or tenants use it as a store, office or meeting room, but it would be a good idea to check this view against the accounting code of practice. Ultimately, it is for each authority to interpret and apply the requirements of the accounting code of practice, and so that (and the associated guidance) should be the touchstone when deciding on the approach to take."

    I hope that the above is helpful and I expect that our members would be willing to respond to any follow up questions you may have.

Children
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