Agenda item

ASSET MANAGEMENT PLAN - HOUSING REVENUE ACCOUNT (HRA)

The Asset Management Plan for the Housing Revenue Account (HRA) is to be presented to the Committee.

Minutes:

The Housing Asset Manager presented the HRA Asset Management Plan, which is a 5-year capital programme plan. After explaining what the Asset Management Plan is and going through the content of the plan, Members were given the opportunity to ask questions that had arisen.

 

A Member asked about whether the replacement of storage heaters could be escalated as it was becoming a big issue for tenants with the recent energy price increases and the inefficiency of them to run.

 

Concerns that 20% of housing stock is below decent homes standard were raised. The Committee was informed that this issue is covered in the plan and the aim is to get rid of the backlog within the 5 years, by this point all homes will meet the required standard.

 

In response to the question on how many rooms at Gretton Court require showers, Members were informed that a business plan and budget is in place and the intention is to upgrade properties as they become void. All properties once void will have the shower installed before they are re-let. Comments were also made about concerns for increased need for accommodation for the elderly in the coming years.

 

The comment was made that residents who look after their properties tend to be penalised as they do not get new bathrooms/kitchens replaced as often as those who have not looked after them. In response, the Committee were informed that age determines when replacements are made, but the condition does have to be considered if it is beyond repair.

 

The comment was made that the business plan was good and well written, however concern was raised that it was too long and there needs to be greater prioritisation. Members were advised that the plan included all actions that need to be done, they have been put into priority order and the list will get reduced as some items will be combined.

 

Members raised the issue about aluminium windows being replaced, and they were informed that the business plan commits to replace half this year and the remaining the following year and therefore all aluminium windows will be replaced by March 2024.

 

A discussion ensued on the budget and the Committee were informed the budget is £5.7m which includes the new build programme. It was confirmed that to date £600,000 has been spent. Procurement for contracts are in place and by the end of the year the full budget will have been spent.

 

Following a question on why the Council does not install solar panels on roofs, Members were informed that fifty properties have had solar panels installed and this was done with funding. The Council continues to seek investment and grant funding is being sought for this and other energy efficiency technologies.

 

In response to a question on whether there are any benchmark figures to compare against other social housing, the Committee was informed that work with Savills has said we are higher than average, and that the benchmarking data has been included in the action plan.

 

The Portfolio Holder for Housing and Landlord Services clarified the following:

  • The plan needs to be robust so can be delivered.
  • The Council now have good staff in place to deliver the plan and systems will be put in place to ensure everything is done correctly.
  • The Council are still picking up legacy issues from 2019 and that is why the plan needs to be robust.
  • The Council are aware of need to look at energy efficiency as this is a concern for most tenants. There is a need to ensure that all homes are properly insulated. Concerns are also taken into consideration, e.g., air source pumps cost more to run than gas boilers.
  • The Council’s decent homes standards is higher than other councils.
  • Several strategies have now been approved and there would be more going forward. The Council would be able to know what can be done for tenants, and tenants will know what they can expect.
  • The Council will need support from Leicestershire County Council to support housing the elderly and to ensure there are enough care homes.

 

The Housing Asset Manager then resumed the report regarding storage heaters. He asked members whether they thought council should prioritise efforts to reduce bills rather than looking at zero carbon at this moment in time.

 

Following a suggestion from the Housing Asset Manager, Members agreed that the Council should prioritize tenants’ wellbeing and help them to reduce cost in the current economic climate over the carbon zero agenda. Members also agreed that the plans to change all storage heaters in homes within the next five years should be brought forward. The majority will be replaced by gas boilers and the new boilers being installed are Hydrogen ready if this becomes available.

 

RESOLVED

 

The Scrutiny Committee recommended to Cabinet that the Council:

  1. works within the remit presented.
  2. prioritises reducing tenants’ bills over the zero-carbon agenda.
  3. removes all remaining storage heaters from Council-owned properties as soon as possible, and
  4. continues to prioritise the insulation of properties.

 

(Cllr Ronan Browne left the meeting at 7:52pm and did not return.)

 

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