Agenda item

This report introduces the Council’s Housing Revenue Account (HRA) Business Plan 2022 to 2052. The purpose of the Plan is to set out the Council’s expectations and plans for council homes for the next 30 years and the financial sustainability of the Council’s housing services.

The Portfolio Holder for Housing and Landlord Services, Councillor Ronan Browne, introduced the report and the Housing Revenue Account Business Plan. Councillor Browne informed Members that he had decided to delay the Business Plan because it needed to be stress tested and in order to incorporate new regulations.

Following a query raised regarding the sensitivity analysis and the projected finances which ranged from a negative £4.5m to a positive £120m, it was explained to the Committee that the sensitivity analysis is designed to highlight the variations that could occur upon the budgets, e.g. if rental income couldn’t be raised as much as anticipated. Members were reassured that Officers would be closely monitoring budgets and adjusting them when required.

Members were informed that the consultant who assisted with the development of the Business Plan stated that in regard to the Council’s costs, rents were low and staffing costs are high. It is hoped that through the Asset Management Plan and the Business Plan, costs would be lowered through targeted interventions. In addition, Members were reassured that Officers would review the Business Plan each year and make amendments as necessary.

The Council would join HouseMark and, following a query, it was confirmed to the Committee that HouseMark would provide opportunities for informal peer reviews as well as benchmarking data but that the data would be only as good as the data inputted by the Council. Members were also informed that more self-assessments would be carried out by the Council.

The question was asked as to why the Asset Management Plan wasn’t completed prior to the Business Plan, as it was felt that the Council would produce a better Business Plan if all assets were known, however it was explained that Officers needed to establish an overview in which to develop strategy. This would be done through the Business Plan which would then inform the Asset Management Plan. Members were reminded that the Business Plan won’t do everything but it would highlight what tenants view as important.

Concern was raised regarding registered providers allocating affordable homes to people from outside of the Borough. Officers reassured Members that when registered providers acquire or provide affordable housing then they are bound by the Housing Allocations Policy which includes local connection criteria.

A Member raised a concern regarding an over reliance on consultants to support Council work, however in response it was explained that the use of the consultant provided the Council with extra assurance and validation to the Business Plan. Although the cost was £4,200, it was recognised that in comparison to the multimillion-pound Business Plan, then the cost for the feedback and extra assurance represents good value. The feedback received from the consultant meant that hiring them was worthwhile and represented value for money. It was recognised that the Council’s housing assets are important and that the Council must take care, even if that means acquiring extra assurance and validation for the Business Plan from a consultant.

Further discussion ensued regarding the use of consultants and it was explained that the consultant met with the Portfolio Holder and Officers. It was noted that the Council had used consultants 10 years ago and not needed them again, as there was knowledge transfer, until the development of the Business Plan.

The comment was made that 20% of the housing stock had not been surveyed as part of the stock condition survey, therefore meaning that the Council do not know the condition of 20% of the housing stock. In response it was explained that the stock condition survey was not the only time Officers obtain access to properties and that elements of the stock, e.g. the heating system, are regularly inspected and maintained. It addition, it was recognised that access to properties is an issue but that safeguarding issues mean that Officers have to carefully manage requests for access. Officers also explained that 80% of the stock had been visually inspected, and that whilst other local authorities had reported stock condition surveys achieving 100% that was due to the fact that the stock had been profiled, so that not all properties were inspected, just inspections of the main property types. Members were assured that the uninspected 20% will be a targeted and each year 20% of the stock will be reinspected to ensure that the stock condition data remains current and accurate to inform both the Business Plan and Asset Management Plan. 

It was noted that the capital programme was underspent by 50% in 2021/22, but Members were reminded that reassurance was given at the time of budget setting that all available funds would be spent going forward. Key to achieving this was the awarding of the capital programme.

A discussion on garages ensued and Members commented that garages shouldn’t be demolished without the correct consideration being given to what replaces them. In response, it was explained that garages are not commercially viable, however if a garage is let then it needs to be in a good condition and occasionally the cost to bring a garage up to standard outweighs the potential income.