Agenda item

Cabinet:

 

1.              Approved the Housing Revenue Account Budget as detailed in Appendix 1 of the report. 

 

2.              Agreed that the average rents chargeable for tenants in general needs Council properties owned by the London Borough of Havering be decreased by 1% from the w/c 2 April 2018 in line with the indicative figures contained in paragraph 2.1.7 of the report.

 

3.              Agreed that the average rents chargeable for tenants in supported housing Council properties, such as sheltered housing and hostels, owned by the London Borough of Havering, be reduced by 1% from the w/c 2 April 2018 in line with the indicative figures contained in paragraph 2.1.8 and 2.1.9 of the report.

 

4.              Agreed the four rent-free weeks for 2018/19 as being: w/c 20 August 2018, the two weeks commencing 17 and 24 December 2018, and the week commencing 25 March 2019.

 

5.              Agreed that service charges and heating and hot water charges for 2018/19 are as detailed in paragraph 2.2.2 of this report.

 

6.              Agreed that the service charges for homeless households accommodated in the Council’s hostels 2018/19 are as detailed in paragraph 2.2.3 of the report.

                               

7.              Agreed that charges for garages should be increased by 7.5% in 2018/19 as detailed in paragraph 2.3.1 of the report

 

8.              Agreed that the service charge for the provision of security and support in sheltered housing for 2017/18 shall be as detailed in paragraph 2.4.1 of the report. 

 

9.              Agreed that the Careline support charge should be increased by 4% for 2018/19 as detailed in paragraph 2.5.1 of the report.

 

10.           Agreed that the Telecare support charges should be increased by 4% for 2018/19 as detailed in paragraph 2.5.1 of this report.

 

11.     Approved the HRA Major Works Capital Programme, detailed in Appendix 2a of the report and refer it to full Council for final ratification.

 

12.     Approved the HRA Capital expenditure and financing for the 12 Sites Joint Venture, detailed in paragraphs 3.19.1 to 3.19.8 and Appendix 2a of the report and refer it to full Council for final ratification.

 

13.     Approved the HRA Capital expenditure and financing to acquire up to 375 affordable dwellings from the Bridge Close JVLLP, detailed in paragraphs 3.20.1 to 3.20.5 and Appendix 2a of the report and refer it to full Council for final ratification. 

 

14.     Agreed to delegate to the Lead Member for Housing, after consultation with the Director of Neighbourhoods, the Monitoring Officer and the s151 Officer, authority to finalise agreement on the terms of the acquisition of affordable housing on Bridge Close referred to in recommendation 13 of the report.

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15.     Agreed to redirect both the balance in the RTB debt repayment reserve and future RTB attributable debt receipts towards the funding of the Estate Regeneration Programme and associated vacant possession costs.

 

16.     Agreed to release balances and redirect the proceeds from the disposal of HRA shared ownership properties and other HRA disposals towards the funding of the Estate Regeneration Programme, associated costs of vacant possession and the HRA New Build Programme.

 

The Cabinet Lead Member for Housing and Deputy Leader of the Council, Councillor Damien White presented the report to Cabinet.

 

The report detailed the annual process required to set the HRA rents and service charges for the financial year 2018/19 and the Capital Programme. The approach adopted has been the same since 2012, enabling the business plan to be designed to provide long term management to the Council’s housing assets and services.

 

The report reflects the update given to Cabinet in November, 2017 and incorporates how the HRA can support the regeneration projects the Council is proud to be taking forward, most notably the 12 Estates Joint venture (JV) and the affordable housing provision on Bridge Close. It also sets out the budget requirements for the operation of services.

 

The Deputy Leader indicated the primary functions of the report are to:

 

·       Approve the rents to be charged for 2018/19

·       Approve the service charges and other fees for 2018/19

·       Approve the overall costs of running the housing landlord services, and

·       Approve the capital programme

 

For this year there is an additional function in that the report seeks Cabinet

 

·       To approve the funding for 12 sites JV and the Bridge Close JV within the Capital Programme as detailed in the Cabinet reports of November, 2017 and January, 2018.  For this reason the Capital Programme included in the report is a five year programme rather than the usual three years.  It was therefore agreed that the title of the report be amended to read from 2018/19 – 20222/23 and not 2018/19 – 2020/21.

 

The Cabinet Lead Member and Deputy Leader of the Council went on to detail the report contents.

 

Rents

 

The Council continues into a third year of a reduction in rents by 1% as set out by the Government.  This reduction will also be applied to Supported Housing, namely sheltered housing and hostel accommodation.  The overall average reduction in rents is £0.97 per week.

This reduction is made when Housing Services have high rent collection rates, low vacant property levels and has made significant efficiency in operating costs over the last two to three years.

 

Service Charges

 

It is the aim of the Council to ensure that those benefiting from service provision are paying for them and to ensure the cost of each service, including overheads, can be fully recovered from service users.  These principles have been adopted for a number of years and now meet with good practice guidance.

Work has been carried out and will continue to improve the value for money of services either by reviewing the staffing and costs of the service or by renegotiation of contracts with some service providers.  A limit of 25% has been placed on such increases and this has led to some decreases in charges.

 

Other fees and Charges

 

Garage charges have increased by 7% to fund repairs and upgrades.  Careline and telecare charges are increasing by CPI plus 1% or 4%.

 

Capital Programme

 

Stock investment, detailed in the report will ensure that the Council’s existing housing stock will be maintained at the “decent homes standard”.

 

The investment in new build and regeneration projects supports the strategy to increase the supply of affordable homes in the Borough which are affordable at local income levels.

 

Cabinet agreed in January, 2018 to award preferred bidder status on the 12 estates initiative.  The £63.3 million initial equity together with the £50.5 million for buy backs and rehousing costs are included within the 5 year Capital Programme.

 

The cabinet Lead Member and Deputy Leader pointed out that the Bridge Close JV detailed to Cabinet in November, 2017 agreed to fund 30% affordable housing with the aspiration that 35% will be achieved.  Negotiations are progressing well to this figure.

 

 

Cabinet:

 

Agreed to amend the date in the title of the report to 2018/19-2022/23 and:

 

1.              Approved the Housing Revenue Account Budget as detailed in Appendix 1 of the report. 

 

2.              Agreed that the average rents chargeable for tenants in general needs Council properties owned by the London Borough of Havering be decreased by 1% from the w/c 2 April 2018 in line with the indicative figures contained in paragraph 2.1.7 of the report.

 

3.              Agreed that the average rents chargeable for tenants in supported housing Council properties, such as sheltered housing and hostels, owned by the London Borough of Havering, be reduced by 1% from the w/c 2 April 2018 in line with the indicative figures contained in paragraph 2.1.8 and 2.1.9 of the report.

 

4.              Agreed the four rent-free weeks for 2018/19 as being: w/c 20 August 2018, the two weeks commencing 17 and 24 December 2018, and the week commencing 25 March 2019.

 

5.              Agreed that service charges and heating and hot water charges for 2018/19 are as detailed in paragraph 2.2.2 of this report.

 

6.              Agreed that the service charges for homeless households accommodated in the Council’s hostels 2018/19 are as detailed in paragraph 2.2.3 of the report.

                               

7.              Agreed that charges for garages should be increased by 7.5% in 2018/19 as detailed in paragraph 2.3.1 of the report

 

8.              Agreed that the service charge for the provision of security and support in sheltered housing for 2017/18 shall be as detailed in paragraph 2.4.1 of the report. 

 

9.              Agreed that the Careline support charge should be increased by 4% for 2018/19 as detailed in paragraph 2.5.1 of the report.

 

10.           Agreed that the Telecare support charges should be increased by 4% for 2018/19 as detailed in paragraph 2.5.1 of this report.

 

11.     Approved the HRA Major Works Capital Programme, detailed in Appendix 2a of the report and refer it to full Council for final ratification.

 

12.     Approved the HRA Capital expenditure and financing for the 12 Sites Joint Venture, detailed in paragraphs 3.19.1 to 3.19.8 and Appendix 2a of the report and refer it to full Council for final ratification.

 

13.     Approved the HRA Capital expenditure and financing to acquire up to 375 affordable dwellings from the Bridge Close JVLLP, detailed in paragraphs 3.20.1 to 3.20.5 and Appendix 2a of the report and refer it to full Council for final ratification. 

 

14.     Agreed to delegate to the Lead Member for Housing, after consultation with the Director of Neighbourhoods, the Monitoring Officer and the s151 Officer, authority to finalise agreement on the terms of the acquisition of affordable housing on Bridge Close referred to in recommendation 13 of the report.

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15.     Agreed to redirect both the balance in the RTB debt repayment reserve and future RTB attributable debt receipts towards the funding of the Estate Regeneration Programme and associated vacant possession costs.

 

16.     Agreed to release balances and redirect the proceeds from the disposal of HRA shared ownership properties and other HRA disposals towards the funding of the Estate Regeneration Programme, associated costs of vacant possession and the HRA New Build Programme.