Agenda item

RESOLVED:

That Cabinet recommends to Council the HRA budget and housing public sector capital expenditure programme for 2024/25, as follows:

i)         that from 01 April 2024, an increase in rents of 7.7% from the 2023/24 weekly rent level, in accordance with Government guidelines, be agreed;

ii)       that from 01 April 2024, an increase in garage rents of 15% from the 2023/24 weekly rent level be agreed;

iii)      that from 01 April 2024, an increase in shared ownership property rents of 9.4% from the 2023/24 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 7.7%;

iv)      that from 01 April 2024 the new disaggregated approach to Service charges, which will reflect transparent and up to date annual charges for all eligible communal and domestic charges incurred by the Council, be agreed;

v)       that the HRA budget, as set out in Appendix 1 of the Cabinet report, be agreed; and

vi)      that a Housing Capital Programme to 2026/27, as set out in Appendix 4 of the Cabinet report, be agreed.

KEY DECISION:

Report to Cabinet and Council

PORTFOLIO:

Housing and Homelessness

ALTERNATIVE OPTIONS CONSIDERED/REJECTED:

As set out in report.

DECLARATIONS OF INTEREST:

None

DISCUSSION:

The Portfolio Holder for Housing and Homelessness reported he was delighted to present the report.  He acknowledged the future challenge for all housing authorities to transition to more energy efficient homes, with upgrades such as Air Source Heat Pumps, where appropriate and the requirement for the Council’s housing stock to be EPC rated C by 2030.  He referenced the Council’s new housing developments including Penman House in Totton and the Hythe Hospital site which were being built to the Future Homes Standard.

The Portfolio Holder highlighted his comments in the report on the need to maintain sound finances which would enable continued and good quality accommodation and services for tenants.

The Interim Strategic Director Housing and Community Safety outlined the recommendations in the report with a proposed annual rent increase of 7.7%, a 15% increase in garage rents, a rent increase for shared ownership which would affect three properties and the disaggregated approach to service charges which would affect 1,300 tenants.  He highlighted that there had been consultation with all tenants who would been affected and that their views had been sought.  Tenants had also been provided with information relating to how they would individually be affected by the proposed changes. 

The expenditure levels were detailed in paragraphs 3.6-3.8 of the report.  The proposed rent increases would enable a significant investment of £17.8 million to be spent on tenants’ properties.  £1 million had been allocated towards maintaining fire safety and £2.170 million had been proposed for greener housing initiatives.

It was highlighted that the medium-term financial position of the HRA account for future years had an estimated operating deficit of approximately £1 million.  This demonstrated the financial pressures of the repairs programme and decarbonisation costs.  These would be further reviewed to enable a balanced budget.  It was essential to maximise income and ensure that all costs were rigorously assessed.

A non-executive member welcomed the transparency of the service charges.  It was questioned when further information would become available on the decarbonisation programme.  In response, the Interim Strategic Director Housing and Community Safety reported that this was being finalised.  The work had been plotted out for all the replacement components over the next 30 years and checks had been made to ensure there was no doubling up of work.  Following this, a meeting would be held with external consultants and it was expected that a revised Business Plan would be available in April.

The Leader of the Council expressed her faith in officers and to the Portfolio Holder.  She was pleased to see the involvement of the Tenant Involvement Group and urged all tenants to get involved and provide their input.