Agenda item

(a)  That the draft Housing Revenue Account Business Plan be approved.

(b)  That the draft Business Plan be issued for consultation to the Residents Board and other residents groups.

(c)  That authority be delegated to the Strategic Director, Regeneration, Housing and Resources following consultation with the Cabinet Member for Housing and Urban Renewal to finalise the Business Plan in the light of comments received during the consultation. 

(d)  That the Strategic Director, Regeneration, Housing and Resources, following consultation with the Cabinet Member for Housing and Urban Renewal, be authorised to begin planning for the Options Appraisal of the Council’s housing stock referred to paragraph 5.7 of this report, with a proposal to be brought back to Cabinet for approval. 

(e)  That the development programme set out on Section 8 of the Business Plan be confirmed.

(f)  That the policy on rents to be charged on new build homes as set out in paragraphs 8.11 and 8.12  of the Business Plan be approved.

The Cabinet considered the draft Housing Revenue Account (HRA) Business Plan 2016-46 that set out the financial commitments and spend priorities for managing the Council’s housing stock.  In view of significant uncertainty around national housing policy, it was proposed that the plan be approved and be followed by a period of consultation, with a further review taking place over the next six months prior to seeking Cabinet approval again in March 2017.

The Interim Strategic Director Regeneration, Housing & Resources gave a presentation on the key aspects of the Business Plan and the future outlook.  The HRA was in a strong position in the short-term, but there were major uncertainties and threats to be addressed which may affect viability.  These included major changes in Government policy such as 1% annual reduction in rents for 4 years from 2016/17 with uncertainty beyond that; mandatory annual payment to Government following sale of higher value voids; “Pay to Stay” would increase rents for households with incomes over £31,000, with proceeds flowing back to the Treasury; welfare reform, including Universal Credit, impacting on collection rates; and the information from the stock condition survey that would report in January 2017.

The Cabinet welcomed the £100m plan over the next seven years to repair, maintain and invest in the existing housing stock and the £40m to be invested in the next four years in developing new affordable homes.  It was noted that as well as consulting residents about the plan and conducting a review in March 2017, it was also proposed to launch, in partnership with tenants and leaseholders, a major Option Appraisal on the future of council homes.

Commissioners discussed various aspects of the Business Plan, particularly the engagement with residents and the Cabinet was assured that there would be a full consultation process.  Speaking under Rule 30, Councillor Morris broadly welcomed the plan but highlighted the importance of addressing fuel poverty and raised concerns about ability of the current Residents Board to deliver effective tenant empowerment.  The proposal to increase rent levels for new Council properties was discussed and the rationale was explained.  The differential level had the potential to generate the income required to fund the building of more new homes, whilst ensuring it was linked to the Local Housing Allowance to retain affordability.  Councillors Anderson and Swindlehurst spoke under Rule 30 and expressed concern about the higher rents on new build properties and the major Option Appraisal on the future of Council homes.  It was confirmed that if the Cabinet approved the Business Plan the new rents would be implemented on the 23 new build properties.  The concerns raised included the near doubling of rents on new builds, the potential impacts on any existing tenants moving to new properties and the fact that the higher rents would be implemented immediately, before the major consultation process.  The comments were noted and a number of the points raised by Members under Rule 30 would be discussed at the next meeting of the Neighbourhoods & Community Services Scrutiny Panel.

At the conclusion of the discussion, the Cabinet agreed the Business Plan and other recommendations as set out in the report.  It felt that the Plan provided a clear direction to secure the long-term viability of the HRA, start a process to engage residents, invest in existing stock and develop new homes where possible.

Resolved –

(a)  That the draft Housing Revenue Account Business Plan be approved.

(b)  That the draft Business Plan be issued for consultation to the Residents Board and other residents groups.

(c)  That authority be delegated to the Strategic Director, Regeneration, Housing and Resources following consultation with the Cabinet Member for Housing and Urban Renewal to finalise the Business Plan in the light of comments received during the consultation. 

(d)  That the Strategic Director, Regeneration, Housing and Resources, following consultation with the Cabinet Member for Housing and Urban Renewal, be authorised to begin planning for the Options Appraisal of the Council’s housing stock referred to paragraph 5.7 of this report, with a proposal to be brought back to Cabinet for approval. 

(e)  That the development programme set out on Section 8 of the Business Plan be confirmed.

(f)  That the policy on rents to be charged on new build homes as set out in paragraphs 8.11 and 8.12  of the Business Plan be approved.