Issue - meetings

The Cabinet Member for Community Leadership and Engagement presented a report on the review of rents and other charges within the Housing Revenue Account (HRA) for 2023/24.

The Cabinet Member reminded colleagues that for the financial years 2016/17 to 2019/20, the Government had imposed a social housing rent reduction policy that had resulted in a loss of income to the Council of approximately £34m.  That arrangement, together with the Government’s revitalisation of the Right To Buy initiative and further intervention on the setting of social housing rents, had severely impacted the Council’s plans to rejuvenate its housing stock. 

Despite those measures, the Council was committed to maintaining, improving and, where possible, expanding its social housing stock and the Cabinet Member set out proposals which sought to balance the financial sustainability of the HRA and the capital needs of the stock with its desire to protect tenants from economic hardship.  In that respect, it was proposed that the maximum 7% increase imposed by the Government for 2023/24 be applied to all rents, meaning that the average rate would increase from £100.97 to £108.04 per week.

With regard to other HRA-related charges, the Cabinet Member confirmed that they too had been carefully considered in the context of the current cost-of-living crisis, with a number being kept at 2022/23 levels while others were to rise in line with the Consumer Price Index (CPI).  It was, however, necessary to increase communal heating and hot water charges by 109% to reflect the substantial increase in the cost of energy supplies.

Cabinet Members acknowledged the reality of rising costs and the balance that the Council had sought to achieve through the proposals.  It was suggested, however, that the communal heating and hot water charges should be reviewed going forward to ensure a more equitable apportionment based on usage levels, as opposed to solely on property size.

Cabinet resolved to:

(i)  Agree that rents for all general needs secure, affordable and sheltered housing accommodation be increased by the below-inflation rate of 7%, from the current average of £100.97 per week to £108.04 per week; 

(ii)  Agree the following service charges for tenants:

(iii)  Agree that charges for communal heating and hot water increase by 109% based on estimated charges, as follows:

(iv)  Note that water and sewage charges shall be increased by the provider, currently estimated at a combined rate of 7.8%; and

(v)  Agree that the above charges take effect from 1 April 2023.