Agenda item - Housing Revenue Account Budget 2021/22

Agenda item

Housing Revenue Account Budget 2021/22

Decision:

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 1.5% from the week commencing 5th April 2021.

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 1.5% from the week commencing 5th April 2021

4 Agreed the four rent-free weeks for 2021/22 are: week commencing 23rd August 2021, the two weeks commencing 20th and 27th December 2021, and the week commencing 28th March 2022.

5 Agreed that service charges and heating and hot water charges for 2021/22 are as detailed in paragraph 2.10 of this report.

6 Agreed that charges for Houses in Multiple Occupation (HMO) leased and managed by the Council (General Fund) are set at the LHA applicable on the 5th April 2021.

7 Agreed that charges for garages should be increased by 1.5% in 2021/22 as detailed in paragraph 2.7 of this report.

8 Agreed that the service charge for the provision of intensive housing management support in sheltered housing for 2021/22 shall be as detailed in paragraph 2.20 of this report.

9 That Members consider the options for the Supported Housing Charge for HRA Hostels as detailed in paragraph 2.24

10 Agreed that the Careline and Telecare support charge should be increased by 1.5% for 2021/22 as detailed in paragraph 2.22 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 Sites Joint Venture and other acquisition and regeneration opportunities detailed in section 4.0 and Appendix 1b of this report and refer it to full Council for final ratification.

Minutes:

Councilor Joshua Chapman, the Cabinet Member for Housing was delighted to bring this report to Cabinet for discussion. The report details the HRA budget and the HRA Capital Works Programme.

The HRA is a ring-fenced account that is used to manage and maintain the Council’s own housing stock. The proposed budget will enable the Council to manage and maintain the housing 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 2021/22.

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 ended the annual 1% reduction that has applied for the past 4 years and re-established the CPI + 1% increase.

At the heart of this report is a desire to provide an excellent stock of high quality homes for local people. A Stock Condition Survey has been carried out using a sample of homes in the Borough to take account of properties currently available. This piece of work has been carried out by Savills, experts in this kind of survey.

Rents in Havering will increase in line with inflation and those on benefits will have the increase catered for in the benefit calculation. Generally rents in Havering are some of the lowest in London and are very competitive.

Money has been held to accommodate for any Health and Safety needs and any obligations placed on the Council through the Fires and Safety Bill. There is also environmental investment to ensure Havering tenants have cost effective heating.

During the course of this year Havering has acquired 35 previously Council owned units for use by Havering residents immediately. It is proposed that next year up to 70 further homes will be acquired through £20 million set aside for this purpose.

Investment has been increased and the proposals for the new Welcome and Assessment Centre were recently discussed in an all Member Briefing, generating a high quality offer to residents of Havering at their most vulnerable. In addition, the current hostel provision has been refurbished to a very high standard.

The Leader of the Council stated his pride in the Council’s direction of travel over the past 5 years starting from almost a standing position to now being the Council with the most ambitious social housing offer and proposals in London. This demonstrates how much the council cares and is passionate in their provision and investment in social housing stock.

It was agreed that Councillor Chapman would meet with Councillor Tucker to discuss further parking provision and the possible use of unused sheds to cover this. However, it was acknowledged that there could be no promises in this regard.

It was noted there was still some unmet need but this would be worked on with the same drive and passion shown over the past years.

Cabinet agreed that this report and the investment coming through as a result, was something to be proud of, demonstrating an amazing amount of additional, high quality affordable homes for the Borough.

Following discussion,