Issue - meetings

To consider a joint report from the Director for Digital, Sustainability & Resources and the Director for Communities, a copy is attached as item 4.

The Executive had before it a report from the Director for Digital, Sustainability and Resources, attached to these minutes as item 4.

The report set out the current and future financial prospects for the Housing Revenue Account and requested that Members agree to set the rent levels and service charges for 2022/23 as set out in the report. The report also considered some of the strategic challenges facing the Housing Revenue Account over the next few years and the impact that these would have over the next 30 years.

Members noted that the rent limitation announced in 2015/16 had significantly affected the financial viability of the Housing Revenue Account for the past few years. However, the Council was now permitted to increase rents on social rent properties by up to the September CPI +1% each year from 2020. It was the Government’s intention that this arrangement should remain in place for a period of at least five years.

A Member asked a question regarding the use of right to buy receipts for the provision of affordable homes. Officers explained that the scheme only enabled the Council to fund 30% of a replacement unit from the right to buy receipts. In the case of street purchases or buying back, the actual amount the Council could apply was lower, at about 7%. As a result, street purchases didn’t offer best value as they had to be funded predominantly through borrowing.

Consideration was also given to the dilemma the Council faced in relation to balancing the need to spend more on the current stock with the need to provide more Council housing to meet local needs at a time when the HRA is in deficit.  

The recommendations in the report were unanimously supported.

Decision

The Executive:

(i)     approved the Housing Revenue Account estimates for 2022/23 as set out in Appendix 1;

(ii)      approved that the rents of Council Dwellings would increase by 4.1%, increasing the average council dwelling rent by £3.86 to £97.98 per week (average rent currently £94.12 per week);

(iii)     determined the level of associated rents and charges with effect from week one of 2022/23:

(a)     Rents of Council garages – agreed an increase of 4.1% to £11.17 (currently £10.73 per week, plus VAT for non-Council tenants);

(b)     Service Charges - delegated to the Head of Housing and Chief Financial Officer in consultation with the Executive Member for Customer Services, the setting of the service charges;

(iv)    approved the HRA Treasury Management Strategy contained in Appendix 3.

Reason for Decision

To set the rent level for 2022/23.

Alternative options considered

As outlined in the report.

Call In

The call in deadline for this decision is Friday 11 February 2022 at 5.00pm.