Decision details

RESOLVED:

That Cabinet recommend approval of the following to Council:

1.     that from 07 April 2025, an increase in dwelling rents of 2.7% from the 2024/25 weekly rent level, in accordance with Government guidelines, be agreed;

2.     that from 07 April 2025, an increase in garage rents of 2.7% from the 2024/25 weekly rent level be agreed;

3.     that from 07 April 2025, an increase in shared ownership property rents of 3.2% from the 2024/25 weekly rent level, in accordance with Government guidelines of RPI +0.5%, be agreed, and that the weekly rent of one additional property sold under previous legislation be increased by 2.7%;

4.     that from 07 April 2025 Service Charges will continue to reflect actual charges and following a reduction in window cleaning and utility costs, these respective charges will be reduced;

5.     that the HRA budget, as set out in Appendix 1 of this report, be agreed; and

6.     that a Housing Capital Programme to 2027/28, as set out in Appendix 4, be agreed.

KEY DECISION:

Report to Cabinet and Council

PORTFOLIO:

Housing and Homelessness

ALTERNATIVE OPTIONS CONSIDERED/REJECTED:

As set out in the report

DECLARATIONS OF INTEREST:

None

DISCUSSION:

The Portfolio Holder for Housing and Homelessness reported he was delighted to present the HRA report which proposed a balanced budget for 2025/26 for approval, supporting the Corporate Plan commitments.

The proposed budget included a rent increase of 2.7%, which should be viewed against the current inflation rate of 3%.  An uplifted maintenance budget was proposed of £18.93 million to be spent on maintaining tenants’ properties during 2025/26.  This included investment on additional windows, bathrooms, replacement heating and insulation to accelerate improvements to council housing which would reduce household energy bills for the benefit of tenants.  This was a key priority of the Cabinet.

The development and acquisition of new council properties was proposed to continue.  The budget was supported by a 30 year business plan, which detailed the spending decisions which would support the sustainability of the HRA for the duration of the plan.

The Strategic Director of Housing and Communities further highlighted that the budget proposed continued support for compliance and safety of tenants and their properties.  The budget proposed £1.5 million for fire safety works and £1.87 million for decarbonisation works to support the energy efficiency measures which had already been highlighted.

In addition to these works, there was a proposed increase in expenditure, which was more than in previous years in order to support the Cabinet in the Corporate priorities.  This included an increased level of borrowing.  Borrowing over a 30 year period had been forecast and this was supported within the plan.

Rent was proposed to be increased, however the flexible service charging approach, instigated last year meant that some service charges would decrease. This was possible due to savings passed on by procuring a better value window cleaning contract, and a reduction in the utility costs for communal areas.

The Portfolio Holders each spoke in support of the report, recognising the benefits of a balanced budget and that it proposed an ambitious programme of works in difficult and challenging financial times.  The importance of continuing to invest in properties to provide high standards to tenants and the decarbonisation works were welcomed.  Finally, the housing team was praised for their work and it was noted that this had been recognised through the Corporate Peer Challenge.

A non Cabinet Member recognised the positive work which had been carried out, including the completion of the Stock Condition Surveys on the housing stock, to understand the future works which would need to be carried out.  It was questioned how the programme of improvement works would be communicated to tenants.

The Portfolio Holder for Housing and Homelessness acknowledged the point made and recognised that the volume of works to be scheduled as part of the maintenance programme was huge.  The works were prioritised and residents would be informed at the appropriate time. 

The Strategic Director of Communities and Housing in addition to this, reported that investment had been made into forecasting software for maintenance works.  Following the completion of the Stock Condition Surveys, there was a good understanding of the condition of properties and when the component parts would need to be replaced.  A programme of works had been estimated over 30 years.  It was important however to avoid setting false expectations to tenants as the programme of works was subject to change.  Tenants were provided with details of the short term programme of works they could expect to be carried out, however, consideration would be given regarding whether this could be extended further, without setting false expectations.

In response to a question from a non Cabinet Member about the proportion of council homes which had been brought up to an EPC C rating, the Strategic Director of Housing and Communities reported that a plan was in place to bring properties up to the EPC C rating by the 2030 deadline.  £1.8 million had been allocated to these improvement works, and it was hoped that the council would be successful in receiving grant funding, which would enable the work to be carried out on a 50:50 shared cost basis.  It was highlighted that the Council had been successful in the delivery of retrofit work and last year and windfall grants had been received to support an enhanced programme of retrofit work, which had been successfully completed.  It was reported that 2,700 properties would need retrofit work to be carried out in order to achieve the EPC C requirement.  The worst performing council properties had already received retrofit works, these being properties with an EPC rating of G, F or E.  The work required to the remaining properties was fairly minimal and this was expected to be completed by the 2030 target.

Executive Management Team, relevant Portfolio Holder and the Housing and Communities Overview and Scrutiny Panel