Cabinet will be asked to approve the refresh of the HRA Business Plan.  The report will also advise Cabinet of the financial impact of the regeneration proposals for the delivery of new affordable homes for local people.

The Cabinet Lead Member for Housing, Councillor Damien White presented the HRA Business Plan Review to Cabinet.

The report detailed the mid-year review of the HRA Business Plan and the impact of the provision of new affordable homes through regeneration schemes in Havering. It takes account of the clarified position on rent setting which had been announced recently, that rents can increase by CPI plus 1% for the five years after the four years of 1% reduction from 2020/21.  This will increase income to the HRA by £15 million over ten years from the position considered in the February budget setting report.

The report identifies the budget provisions available to support the provision of truly affordable homes for Havering residents.  Resources are available to build and or acquire new affordable homes over the next 15 years.

Provision has been made for the 12 Estates Regeneration Scheme of around £145 million to provide more affordable homes managed by the Council on existing estates. The aspiration is to increase the level of affordable properties available for rent by over 30% on the new developments.  It is anticipated that more than 300 low cost home ownership properties will be delivered on those estates which will affect a 50% increase in the number of affordable homes on those estates.  These homes will be at rent and shared ownership levels that local people can afford on local wages.

£55 million has been identified for delivering affordable housing for other regeneration projects in the Borough thus increasing local provision for residents even further.

Further allocations will form the subject of future Cabinet reports.

It was further proposed to allocate RTB receipts to the regeneration buyback programme as this has been significantly oversubscribed by people wishing to sell their properties back to the Council.

Following discussion,

Cabinet:

1.              Approved the update of the Housing Revenue Account Business Plan as detailed in Appendix 3a of the report. 

2.       Noted the implications of the housing estate regeneration and other regeneration opportunities on the HRA Business Plan.

3.       Approved the allocation of £3.360 million of HRA 1-4-1 Right to Buy receipts to fund the estates renewal buyback programme. This will be used to accelerate the estates buyback programme whilst maintaining a neutral effect on the HRA.

4.       Instructed officers to report back to Cabinet, within twelve months, with a review of the Allocations Policy and Local Lettings Plan, including eligibility criteria for affordable low cost home ownership properties and rent levels for affordable rent properties.