Agenda item

The Director of Housing Submits a report setting out the City Mayor’s proposed Housing Revenue Account (HRA) budget for 2025/26 prior to it being considered at Full Council on 19^th February 2025.

A minute extract from the meeting of the Housing Scrutiny Commission on 7^th January 2025 is at Appendix H.

The Overview Select Committee is recommended to make any comments on

the report.

The Director of Housing submitted a report setting out the City Mayor’s proposed Housing Revenue Account (HRA) budget for 2025/26 prior to it being considered at Full Council on 19th February 2025.

The Overview Select Committee was recommended to make any comments on the report.

The following was noted:

·       This was a balanced HRA proposal despite pressures of £5m in the Housing Revenue Account

·       To balance the budget there was a proposal of a 2.7% rent increase (this was the maximum allowed by central government.) Anything below the 2.7% would lead to a loss of income and could impact on investment and cause a reduction in services.

·       Alongside the rent increase there were proposals for an equivalent 2.7% increases in garage and hostel rents. A 4% increase for Gypsy and Traveller plot rents, a 1.7% increase on service charges (except for a 9.1% reduction in waylighting service charges due to a direct link to electricity costs reductions.

·       For District heating, there were now 1900 tenants and 1000 home-owners supplied through this heating scheme. Almost 1000 were on meters and the remainder were on weekly fixed charges.

·       For the charges on properties where there was heat meter separated into fixed and variable charges, there was a forecasted fixed cost reduction of 26%, following the reduction of 24% last year

·       For the heat variable charge there was a proposed reduction in charge of 25%, following a 29% reduction last year.

·       For those properties without a heat meter, it was proposed that there would be a reduction of 26%

·       From a Capital Perspective, this would create a Capital Budget of £40.96m. Of this £30m would relate to new build housing, broken down into loans and right to buy receipts. The remaining £10.9m would go towards additional investment in housing stock.

·       The budget consultation had gone out to tenants with the majority in support of the proposals.

·       Proposals had then gone on to the Housing Scrutiny Commission with no changes being requested. The next stage would be for proposals to go to Full Council. 

The Commission were invited to ask questions and make comments for the officers and the executive to respond. Key points included:

·       A recommendation for an amendment to be made was agreed. This being that the City Mayor could reduce charges, but any increase would be subject to a sperate decision. 

·       Following changes to the Right to Buy Scheme there had been an increase in applications. It was anticipated that the amount of sold properties would reduce in the future which in turn would lead to a reduction in the amount of Right to Buy Scheme receipts available to buy/build new houses. Discussions were in place with Homes England to explore how building would continue to be funded.

·       Social Housing availability was at around 19.5K currently.

·       Maintenance charges in housing such as blocks of flats were still being reviewed, this was a complex piece of work.

·       For loft insulation, National Government green schemes were considered as they became available. Work took place in conjunction with the Sustainability Team.

·       Regarding the climate emergency, £30m had been used towards highly efficient new affordable housing and new schemes such as Saffron, were the most energy efficient housing and low cost to run. The most Energy efficient boilers were installed, and the capital programme also supported new roofing and windows and doors to ensure energy efficiency in properties.

AGREED:

1)    That the recommendations for Full Council be noted by the committee.

2)    That the comments of the Housing Scrutiny Commission be noted by the committee; and

3)    That comments made by members of this commission to be taken into account by the lead officers.

That a recommendation be noted for an amendment this being that the City Mayor could reduce service charges but any increase would be subject to a sperate decision.