Issue - meetings

The Cabinet Member for Finance, Growth and Investment presented a report on the Housing Revenue Account (HRA) estimates, rents and other related charges for 2017/18, together with a 30-year HRA Business Plan.

The Cabinet Member advised that the main issue affecting the HRA was the Government’s requirement under the Welfare Reform and Work Act 2016 for social housing landlords to reduce rents by 1% each year over four years.  Although the reduction would be positively received by the vast majority of tenants, it represented a significant income loss to the Council of £33.6m over the four-year period in comparison to the projected income under the previous rent policy, and would impact on the Council’s plans for maintaining and improving its housing stock.  The Cabinet Member added that the Government’s Right To Buy policies also had a negative impact on the HRA, particularly as receipts were only part-retained by the Council with the remainder being used by the Government to subsidise the private sector housing market.

Tenant service charges were to be frozen for 2017/18 and the Cabinet Member confirmed that plans to achieve a full-cost recovery position for grounds maintenance, caretaking and estate cleaning services would be included in the proposals for 2018/19.  The Cabinet Member also advised on an increase to hostel accommodation daily rents for 2017/18 to meet the higher costs associated with running the premises and the application of the target rent formula for void properties.

The five-year Housing Capital Programme to 2021/22 totalled £318.44m, which included circa £173m for investment in current stock, £33m for estate renewal, £110m for new build properties and £1.75m on a new IT system.  It was also noted that the 30-year HRA Business Plan would be reviewed and updated each year.

Cabinet Members spoke in support of the proposals and commended the capital investment in current properties and estates.  Arising from the discussions, the Cabinet Member for Finance, Growth and Investment confirmed that a new stock condition survey would be undertaken during 2017/18.  Officers also responded to enquiries relating to the interest charges of £10.059m within the HRA and the use of General Fund monies to support the estate renewal programme.

The Cabinet resolved to:

(i)  Agree that rents for all general needs secure, affordable and sheltered housing accommodation be reduced in line with the national rent reduction programme, from the average of £98.02 per week to £96.35 per week;

(ii)  Agree that all new lettings, once a property becomes empty, be set at the target rent (minus 1% for each of the years that rents have been reduced by legislation) or the rent paid by the previous tenant, whichever is the higher;

(iii)  Agree that service charges for tenants are frozen at 2016/17 levels;

(iv)  Agree that charges for heating and hot water are frozen are frozen at 2016/17 levels;

(v)  Agree that rents for stock used as temporary accommodation be set at 90% of the appropriate Local Housing Allowance (LHA);

(vi)  Agree that service charges for hostels  ...  view the full minutes text for item 98