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 requirement tor social housing landlords to continue to reduce rents by 1% each year.  While this had a nominal benefit to tenants it meant a loss of £900,000 revenue to the Council which could have been reinvested in maintaining and improving the Council’s housing stock.  The Cabinet Member added that the Government’s Right To Buy (RTB) policies also meant that there were fewer properties available to those on the Council’s waiting list and the average debt per property had increased to almost £17,000 as a result of the reduction in stock.

The HRA Business Plan reflected an increased bad debt provision for 2018/19 of £5.3m which the Cabinet Member suggested was necessary in view of the Government’s ongoing programme of austerity and welfare reforms which would further impact on rent collection levels and cause further stress for individuals and families.  Other proposals set out in the HRA Business Plan included £750,000 for a full stock condition survey and £15m over the next three years for improved fire prevention measures in flatted accommodation in the light of the Grenfell Tower tragedy.

The five-year Housing Capital Programme to 2022/23 totalled £323.62m, which included investment during 2018/19 of £50.716 in current stock and £22.304m in new homes.  The Cabinet Member commented that the Council’s shared ownership plans meant that those earning the London Living Wage, who would be unable to secure a full mortgage, would be able to get on to the home ownership ladder in Barking and Dagenham.  Following on from that point, the Leader observed that the Government’s lack of investment in affordable housing was having a devastating effect on the ability of those who relied on social housing to live in the London area.

Arising from the discussions, officers were asked to provide the Cabinet Member for Corporate Performance and Delivery with a breakdown of the service charges for hostel accommodation. 

The Cabinet resolved to:

(i)  Agree that rents for all general needs secure, affordable and sheltered housing accommodation be reduced by 1% in line with the national rent reduction arrangements, from the current average of £95.09 per week to £94.14 per week;

(ii)  Agree the following service charges for tenants:

(iii)  Agree that charges for heating and hot water increase by inflation (2.6%) in 2018/19 as follows:

(iv)  Agree that rents for stock used as temporary  ...  view the full minutes text for item 93