Agenda item - HOUSING REVENUE ACCOUNT (HRA) BUSINESS PLAN 2022-52

The Portfolio Holder for Housing and Landlord Services to submit a report introducing the Council’s Housing Revenue Account (HRA) Business Plan 2022-52.

Cabinet:

(1) ENDORSED the HRA Business Plan 2022 to 2052;

(2) RECOMMENDED to Council that:

(a) The Housing Revenue Account (HRA) Business Plan 2022 – 2052 and associated policy recommendations be approved;

(b) Delegated authority be given to the Director for Housing and Communities in consultation with the Director for Corporate services and the Portfolio Holder for Housing and Landlord Services to review and update the financial modelling within the HRA Business Plan on an annual basis to reflect the most up to date stock condition data;

(c) Delegated authority is given to the Director for Housing and Communities in consultation with the Director for Corporate services and Portfolio Holder for Housing and Landlord Services to access the HRA Development and Regeneration Reserve to progress projects and activities in support of the HRA up to a limit of £100k per project and up to a maximum of £500k in any one year subject to the financial viability of the HRA Business plan not being undermined;

(d) The target working balance of the HRA be revised to £1m with effect from 1 April 2023;

(e) That the affordability of new borrowing be measured using industry standard indicators, and these be tracked alongside the HRA business plan;

(f) That the current policy of not providing for the repayment of debt within the HRA be continued in respect of existing and any new borrowing;

(g) The rent for re-let properties is set to the 5% upward

tolerance allowed on formula rent;

(h) That the Director for Housing and Communities is designated as the nominated person with responsibility for compliance with landlord health and safety on behalf of the Council;

(i) That the Assistant Director for Housing Management is designated as

the nominated person with responsibility for ensuring that the consumer

standards, as set out by the Social Housing Regulator are met;

(j) That the following finance principles set out at Section 9.8 are agreed

· that overhead recharges remain as is with annual uplift for inflation

· that any growth in management and maintenance costs is met by reductions elsewhere within the HRA

· that actual rent increases are in line with Government policy to maximise income to the HRA.

Michelle Howard, Director for Housing and Communities introduced the report, the purpose of which was to introduce the Council’s Housing Revenue Account (HRA) Business Plan 2022-52.

Mrs Howard highlighted that as well as being considered by Cabinet this evening, the HRA Business Plan (2022 to 2052) would be considered by Council later this month. The plan set out how money available for the Council to maintain and improve council homes would be spent. It showed that the HRA was sustainable over the period but also acknowledged like any other business plan of its nature that it was vulnerable to factors such as inflationary pressures.

Mrs Howard advised that the plan prioritised compliance (landlord health and safety) and set out how the Council could maintain a focus on meeting the required Decent Homes Standard across all its housing stock. There were other housing improvements that were more a matter of choice, affordability and prioritisation within the remaining budget available.

Mrs Howard confirmed that the Business Plan showed that after meeting obligations, there was an average annual of sum of £796k remaining. Resources needed to be managed carefully through a detailed 5 year Asset Management Plan, to be brought forward for Cabinet consideration later this year and also through taking account of risks and pressures, such as inflation or changes to the Decent Homes Standard (government consultation to be announced). The Plan would be supported by an Affordable Housing Development Plan (on the agenda for today) and Asset Management Plan and there were commitments to listen to tenants throughout delivery of the plan, which would be updated annually.

The Portfolio Holder for Housing and Landlord Services, Councillor Ronan Browne thanked Mrs. Howard and her team for producing a very thorough piece of work and a robust Plan. It was important for the Council to maintain its housing stock well, as new government regulations would require this. Funding and compliance works would help ensure the safety of tenants. There may be some changes when the Decent Homes Standard would be reviewed. The Plan had been stress tested and tenant engagement and scrutiny would be robust. He acknowledged that the cost of living crises would affect tenants but noted that the Council had some of the lowest rents for its good quality, affordable council homes.

The Leader thanked Councillor Browne, Mrs Howard and her team for their work, commenting that good progress had been made towards ensuring that the Council had effective control of compliance and health and safety issues. There was still much work to be done but the HRA Business Plan would help the Council to deliver excellent homes for tenants.