Agenda item

The Director of Housing submits a report detailing the proposed Housing Revenue Account (HRA) budget for 2025/26.

The Director of Housing introduced the item, and it was noted that:

·       Positively it was a balanced budget.

·       The suggested rent increase was the maximum of 2.7% which equated to an average increase of £2.49 per week. Any increase below this level would have created a shortfall in the budget meaning cuts would have had to be made to the budget.

·       Gypsy and traveller rent increase was higher as this had to fund itself.

·       The service charges were only covering the cost of the services.

·       The forecasted price of gas was significantly lower, so a reduction had been proposed to reflect this for those on meters.

·       Properties with no meter have had a proposed reduction of fixed charges by 26%.

·       The capital budget included £30 million for new housing. Pg 22 of the agenda pack gives a full breakdown of this.

·       A consultation with tenants occurred which utilised online resources and 2 days of face-to-face responses. This had a good response rate, and the majority of tenants supported all proposals. The outcome of those who supported the rent increase compared to those who did not was a close call however.

In response to questions and comments from Members, it was noted that:

·       There are 37 Gypsy and Traveller households split across 3 sites. The main site had 21 units. The rent increase was higher due to the account not sitting in the Housing and Revenue Account, meaning it needed to be self-funding. Any increase below 4% meant it would not cover the costs incurred. 

·       The Gypsy and Traveller Team supported the community. Most of the households received housing benefit, and this would cover the increase.

·       There was a waiting list for the sites due to the quality of them and the support received by households on them.

·       The service charge rise of 1.7% had increased in line with inflation to cover increased running costs. If the charge was not increased, there would have to be a reduction in services offered.

·       There have been some miscommunications around meter installations. The meters weren’t compulsory and if residents are not answering or say no, they have not been installed. However, most residents are making significant savings when they have moved to a meter.

·       Where savings have not been made or high use is identified, officers have investigated to establish why and provide advice and support to tenants and leaseholders to help address this.

·       The move to meters had been a success and the topic may want to come to the commission. The biggest issue faced was misinformation and communication.

·       It was important to acknowledge that to reduce bills, it may mean changes were needed in behaviour.

·       If there had been instances where meters had been thought to be faulty reported to Councillors, Councillors should take contact details so it can be addressed.

·       It was important to highlight that the evidence had demonstrated that the vast majority of bills had reduced following the installation of a meter.

·       The Income Management Team have demonstrated excellence in supporting tenants, maximising incomes and providing help in accessing services and schemes which have assisted tenants.

·       The team collected 99% of rent, with only 7 evictions last year. There were 5 evictions in the previous year. Although classed as evictions, there were often instances where the property had been abandoned opposed to an eviction.

·       60% of tenants were on housing benefit so the increase will be covered. 10% of tenants were on partial housing benefit so will also be covered. The team had been working closely with the other 30%.

·       The £30 million is to have covered the cost of a mixture of new builds and acquisitions to provide more homes.

·       There had been over 750 applications for Right to Buy since changes had been announced by Government before the scheme change. The service had to estimate how many sales are likely to complete so it could be factored into the budget.

·       Some Right to Buy receipts were unlikely to complete due to forms not being completed adequately.

·       Due to the large number of applications, the time frame for responses was unclear but housing officers will find out more from the corporate team responsible if addresses were provided for individual cases by Councillors.

·       The increased number received was likely to have a negative impact initially, however it was hoped that because of the discount changes that there would be a slowing in applications which may protect the budget moving forward.

·       To protect the Housing Revenue Account, all Right to Buy’s would have had to cease.

·       There had been a consultation ongoing by the Government on Right to Buy.

·       Social housing demand means that both new builds and acquisitions had been required. The extent of new builds had been constrained by the industry surrounding house building.

·       Alternative construction methods had been constantly reviewed and the most suitable methods were considered on a site-by-site basis.

·       In relation to the block of flats, The Leys, procuring contractors had been difficult for renovating accommodation. The procurement failed twice which had meant that alternative methods were considered. Proposals on a larger scheme had been taken forward following consultation with ward councillors that it was what was needed and wanted in the area and would have more success in attracting a contractor.

AGREED:

The Commission noted the report.