Decision details

Councillor Lesley Kelly, Cabinet Member for Housing, introduced the report

The report set a budget for the Council’s Housing Revenue Account (HRA) and HRA Capital Programme.  From 2012 the position of the HRA had changed from previous years because of the introduction of a regime, known as “Self Financing”.  An update to the HRA Business Plan was provided.

The HRA remained a ring-fenced account that was used to manage the Council’s own housing stock.  The proposed budget would enable the Council to manage the stock to a reasonable standard and to complete the Council’s Decent Homes Programme.  It further set rents, service charges and other charges for Council tenants for the year 2013/14.

Reasons for the Decision

The Council was required to set the housing rent, service charges and a budget in accordance with the Local Government and Housing Act 1989.

Alternative Options Considered

There were no alternative options insofar as setting a budget was concerned.  There were, however, options in respect of the various elements of the budget.  These were considered in preparing the budget and covered such things as the rent and service charge increase, budget growth and capital programme proposals.

Cabinet agreed:

1.            The Housing Revenue Account Budget as detailed in Appendix 1 to the report. 

2.            That the average rent for existing tenants in Council properties owned by the London Borough of Havering be increased by £5.06, from £85.74 to £90.80 (5.90%) with effect from 7 April 2014, in line with the Government’s current policy to restructure rents.  This would mean in effect, that rents were increased as set out in the table below:

3.            That rents for new lettings from 7^th April 2014 would be set at formula rents.

4.            That the rent-free weeks for 2014/15 be w/c 25 August 2014 the two weeks commencing 22 December 2014, and the week commencing 30 March 2015.

5.            That tenants’ service charges and heating and hot water charges for 2013/14 should be increased or decreased as follows:

6.            That the service charge for homeless households accommodated in the Council’s hostels should be increased by 3.7% to £24.85 a week.

7.            That charges for high and medium demand garages were increased by 3.7% and that rents for low demand garages should be frozen.

8.            That support charges for mobile support for older people were increased by 3.7% as follows:

9.            That the Careline support charge  be increased by 3.7% as follows:

10.         That Telecare support charges be increased by 3.7% as set out below:

11.         To maintain the transitional arrangements to correct the undercharging, by £4.18 increase plus inflation a week, of tenants in the former Hornchurch mobile support pilot scheme, whereby the full charge would be gradually increased over the five year period 2012/13 to 2016/17 inclusive for the 13 tenants paying for this service; for 2014/15.  This amounted to an increase to the weekly charge (52 weeks) of £0.87p.