Agenda item

HRA Business Plan 2024-25

Decision:

Report:HRA Business Plan update, Budget 2024/25 & Capital Programme 2024/25–2028/29.

Presented by: Councillor Paul McGeary - Lead Member for Housing

Cabinet:

1 Approved the Housing Revenue Account Budget as detailed in paragraph 3.5.

2 Agreed that the rents chargeable for tenants in general needs Council properties owned by the London Borough of Havering be increased by 7.7% from the week commencing 1^st April 2024.

3 Agreed that the rents chargeable for tenants in supported housing Council properties, such as sheltered housing and hostels, owned by the London Borough of Havering, are increased by 7.7% from the week commencing 1st April 2024.

4 Agreed the four rent-free weeks for 2024/25 are: the week commencing of 26th August 2024; 16th December 2024; 23rd December 2024 and the 31^st March 2025.

5 Agreed that service charges and heating and hot water charges for 2024/25 are as detailed in section 2.20 of this report.

6 Agreed that charges for garages should be increased by 7.7% in 2024/25 as detailed in paragraph 2.9 of this report.

7 Agreed that the service charge for the provision of intensive housing management support in sheltered housing for 2024/25 shall be as detailed in paragraph 2.25 of this report.

8 Agreed the Supported Housing Charge for HRA Hostels as detailed in paragraph 2.31 of this report.

9 Agreed that the rent charge to shared ownership leaseholders is increased by 8.9% as detailed in paragraph 2.7 of this report.

10 Agreed that the Care-line and Telecare support charge should be increased by 7.7% for 2024/25 as detailed in paragraph 2.28 of this report.

11 Approved the HRA Major Works Capital Programme, detailed in Appendix 1a of this report and refer it to full Council for final ratification.

12 Approved the HRA Capital expenditure and financing for the 12 Estates Joint Venture and other acquisition and regeneration opportunities detailed in section 4.4 – 4.12 and Appendix 1b of this report and refer it to Full Council for final ratification.

13 Approved the acquisition of 47 affordable homes by the HRA on the Quarles Campus site from Mercury Land Holdings, as detailed in paragraph 4.10 of this report, and delegate approval of the contract terms and completion to the Strategic Director of Place, acting in consultation with the Strategic Director of Resources Officer and the Deputy Director of Legal & Governance.

Minutes:

Report: HRA Business Plan update, Budget 2024/25 & Capital Programme 2024/25–2028/29.

Presented by: Councillor Paul McGeary - Lead Member for Housing

This report sets a budget for the Council’s Housing Revenue Account (HRA) and HRA Major Works and Capital Programme. Cabinet approved the Housing Asset Management Plan 2021-2051 in October 2021 and the budgets and projections of expenditure required to maintain the stock to a good standard have been used in the preparation of the capital programme in this report. A summary is provided of the HRA Business Plan 2023-2052.

The HRA is a ring-fenced account that is used to manage and maintain the Council’s own housing stock. The Council is legally required to not set a deficit budget. The proposed budget will enable the Council to manage and maintain the housing stock to a good standard and provide funding for a significant acquisition, new build and estate regeneration programme. It further sets rents, service charges and other charges for Council tenants and leaseholders for the year 2024/25.

As part of the new regulatory framework for local government housing services, councils are now subject to the Regulator of Social Housing’s (RSH) Rent Standard. This has introduced the CPI + 1% increase arrangement, based on the published rate for September 2023 making an increase for 2024/25 of 7.7%.

In order to change any HRA rent liability, the local authority must notify tenants and give 28 days’ notice of any change after the authority has made a properly constituted decision of that change. This means that, following a Cabinet decision on rent levels to be charged in any year, the local authority must write to all tenants to advise them of the new rent liability for the following 12 months.

Should the Cabinet adopt the recommendations, a notification will be sent to tenants in the first week of March 2024, to make the new charge effective from the first week of April 2024.