Agenda item

To consider the HRA budget and the housing public sector capital expenditure programme for 2023/24, including a presentation on the 30 year Business Plan.

The Panel considered the HRA budget and the housing public sector capital expenditure programme for 2023/24.

The pressures the Council was facing as a Housing Authority were detailed in the report and further outlined at the meeting, which included, the costs of providing services to tenants, ensuring buildings were safe and hazard free, the requirement to deliver more energy efficient homes as well as to provide more affordable homes. 

The HRA budget proposed increased expenditure of £3.609 million, exceeding the anticipated increased income of £2.328 million, thereby reducing the annual amount available to repay principal borrowing by £1.331 million.  Members noted that a loan of £4.1 million was to be repaid during 2023/24 and this would be replaced by a potential new borrowing commitment of £1.331 million, which would put greater pressure on the HRA in future years.  Members noted the draft HRA 30 year business plan which had been attached as Appendix 4 of the report.

The report proposed a rent increase of 7% from 3 April 2023, which was in line with the Government’s revised cap on rents for 23/24.  This was considered to be the right balance in order to ensure that the Council could continue to provide high quality services as well as carry out the maintenance and repairs to the housing stock.

It was questioned how many tenants would be directly affected by the increase in social rent. Due to them being in receipt of housing benefit and / or Universal Credit, it was acknowledged that the majority of the Council tenants, 73%, would be largely protected from the proposed increase.

The proposed increase of 13% in garage rents was noted.  It was acknowledged that this increase was necessary in order to carry out maintenance programmes to garages.  Garage rents had not been increased in the last 2 years.  Officers felt that anyone renting a garage, despite this proposed increase was still being offered good value for money.    A Garage Asset Strategy was proposed to be developed, taking a more strategic approach to the management of garages and would consider the income and expenditure impacts on garages. 

A member of the Panel questioned the position on void properties.  It was noted that on average 30-35 properties were vacant at any one time.  Each property would require a maintenance inspection and any repairs prior to being relet.  A small number of properties had been vacant in the longer term due to structural issues and additional funding had been proposed to reduce the void time and to bring properties back for rent sooner.

The Panel accepted that the recommendations in the report sought to maximise HRA income and that this was necessary given the current financial pressures on the HRA.

RESOLVED:

That the Panel noted the following recommendations to Cabinet in relation to the HRA budget and housing public sector capital expenditure programme for 2023/24:

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

2.     That from 03 April 2023, an increase in rents of 7.0% from the 2022/23 weekly rent level, in accordance with Government guidelines, be agreed;

3.     That from 03 April 2023, an increase in garage rents of 13% from the 2022/23 weekly rent level be agreed;

4.     That from 03 April 2023, an increase in shared ownership property rents of 7% from the 2022/23 weekly rent level, varied from the allowed RPI +1% increase of 13.1%, in accordance with Government requests of the Housing Sector, be agreed;

5.     That from 03 April 2023 a further uplift in domestic energy service charges, up to a maximum of 25% and an increase of up to 7% in communal service charges, in line with the annual rent increase, ahead of a wider review and consultation later in the year, be agreed; and

6.     That a Housing Capital Programme to 2025/26, as set out in Appendix 4, be agreed.