Agenda item

Cabinet:

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

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 week commencing  2^nd  April 2019 in line with the indicative figures contained in paragraph 2.1.4 of this 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 week commencing 2nd April 2019 in line with the indicative figures contained in paragraph 2.1.4 of this report.

4.              Agreed the four rent-free weeks for 2019/20 as being: week commencing 19th August 2019, the two weeks commencing 16^th and 23^rd December 2019, and the week commencing 30^th March 2020.

5.              Agreed that service charges and heating and hot water charges for 2019/20 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 in 2019/20 are as detailed in paragraph 2.2.3 of this report.                               

7.              Agreed that charges for garages should be increased by 3.4% in 2019/20 as detailed in paragraph 2.3.1 of this report

8.              Agreed that the service charge for the provision of intensive housing managementsupport in sheltered housing for 2019/20 shall be as detailed in paragraph 2.4.1of this report. 

9.              Agreed that the Careline support charge should be increased by 3.4% for 2019/20 as detailed in paragraph 2.5.1 of this report.

10.           Agreed that the Telecare support charges should be increased by 3.4% for 2019/20 as detailed in paragraph 2.5.1 of this report.

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

12.     Approved the HRA Capital expenditure and financing for the 12 Sites Joint Venture and Bridge Close detailed in paragraphs 3.5.1 to 3.5.17 and Appendix 2a of this report and refer it to full Council for final ratification.

13.     Approved the £10m Estate Improvement Programme detailed in paragraph 4.4 and Appendix 2a of this report and refer it to full Council for final ratification.

Councillor Joshua Chapman, Cabinet lead member for Housing presented the report to Cabinet.  This detailed the Housing Revenue Account Budget and HRA Capital programme.

2019 is the last year of the 1% reduction in rents so the Council has had no option than to reduce rents by this amount.  Next year, the rent regime will change back, enabling Councils to increase rents by CPI plus 1%. 

The HRA borrowing cap has been lifted which gives the Council the opportunity to look again at its overall financial capacity to support the regeneration programme, and ensure that the existing stock is maintained to the Decent Homes Standard. 

The report before Cabinet sets out borrowing of £156m over the next 5 years from 2019/20. 

The budget includes a 5 year £36m stock investment programme including provision for fire safety works such as doors, sprinklers, Fire Risk Assessments and other preventative works.  The planned maintenance programme has been accelerated over and above the current programme to bring forward the replacement of kitchens and bathrooms, roofs, asbestos removal, lift replacements and communal boiler replacement.   

A new £10m estate improvement programme has been included in the budget to improve Council estates and council homes.  The extra money will be spent on giving estate buildings and communal areas a facelift.  Works could include improvements to communal areas by upgrading and installing new fencing, revised landscaping, with upgrades to paths and footways, and better external and communal lighting that will make our residents feel safer. Where necessary, internal communal areas will be redecorated, along with upgrades to door entry systems and the renovation of some building exteriors.

HRA reserves have been increased from £2.5m to £10m which is prudent for a housing stock of Havering’s size and cushions the authority for any unforeseen events. 

Service charges are set on the basis of full cost recovery as previously agreed by Cabinet with the increase capped at 25% to phase the implementation of full cost recovery.  This lessens the impact of the increase for residents, smoothing the increase over a period of years.  This applies to all service charges with the exception of the service charge for sheltered housing. 

Last year, Cabinet decided not to increase sheltered service charge to the 25% cap but instead agreed an increase of CPI plus 1%.  The report recommends that this is continued, as the sheltered service is undergoing a number of changes, including the closure of some schemes as part of the 12 estates regeneration.  A further review into the actual costs of the future service will be carried out in 2019/20. 

An additional £20m has been included in the budget for additional regeneration acquisitions, which is to purchase properties in the vicinity of regeneration sites, to increase the provision of affordable housing in or around these locations through additional site assembly.    

There is also £10m in the budget for the purchase of new properties, potentially off-plan developments, to increase the overall supply of affordable housing. 

There followed discussion and

Cabinet:

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

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 week commencing  2^nd  April 2019 in line with the indicative figures contained in paragraph 2.1.4 of this 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 week commencing 2nd April 2019 in line with the indicative figures contained in paragraph 2.1.4 of this report.

4.              Agreed the four rent-free weeks for 2019/20 as being: week commencing 19th August 2019, the two weeks commencing 16^th and 23^rd December 2019, and the week commencing 30^th March 2020.

5.              Agreed that service charges and heating and hot water charges for 2019/20 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 in 2019/20 are as detailed in paragraph 2.2.3 of this report.                       

7.              Agreed that charges for garages should be increased by 3.4% in 2019/20 as detailed in paragraph 2.3.1 of this report

8.              Agreed that the service charge for the provision of intensive housing managementsupport in sheltered housing for 2019/20 shall be as detailed in paragraph 2.4.1of this report. 

9.              Agreed that the Careline support charge should be increased by 3.4% for 2019/20 as detailed in paragraph 2.5.1 of this report.

10.           Agreed that the Telecare support charges should be increased by 3.4% for 2019/20 as detailed in paragraph 2.5.1 of this report.

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

12.     Approved the HRA Capital expenditure and financing for the 12 Sites Joint Venture and Bridge Close detailed in paragraphs 3.5.1 to 3.5.17 and Appendix 2a of this report and refer it to full Council for final ratification.

13.     Approved the £10m Estate Improvement Programme detailed in paragraph 4.4 and Appendix 2a of this report and refer it to full Council for final ratification.