Cabinet:

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

2.     Agree that the rents chargeable for tenants in general needs Council properties owned by the London Borough of Havering be increased by 2.7% from the week commencing 7^th April 2025.

3.     Agree 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 2.7% from the week commencing 7^th April 2025.

4.     Noted the full annual rental charge will be billed over 48 weeks of the financial year and to agree the four weeks when rents will not be collected during 2025/26 are: the week commencing of 25^th August 2025; 15^th December 2025; 22^nd December 2025 and the 30^th March 2026.

5.     Agreed that service charges and heating and hot water charges for 2025/26 are as detailed in section 2.11 to 2.23 of this report.

6.     Agreed that charges for garages should be increased by 2.7% in 2025/26 as detailed in section 2.9 of this report.

7.     Agreed that the service charge for the provision of intensive housing management support in sheltered housing for 2025/26 shall be as detailed in section 2.24 of this report.

8.     Agreed the Supported Housing Charge for HRA Hostels as detailed in section 2.30 of this report.

9.     Agreed that the rent charge to shared ownership leaseholders is increased in line with current lease conditions as detailed in paragraph 2.8 of this report.  

10.Agreed that the Care-line and Telecare support charge should be increased by 2.7% for 2025/26 as detailed in section 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 – 4.14 and Appendix 1b of this report and refer it to Full Council for final ratification.

Report: HRA Business Plan update, Budget 2025/26 & Capital Programme 2025/26–2029/30.

Presented by: Councillor Paul McGeary, CabinetMember for Housing and Property

Summary: (response to Overview &  Scrutiny comment, at end of this summary)

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 2024/25-2053/54.

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 2025/26.

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 2024 making an increase for 2025/26 of 2.7%.

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 2025, to make the new charge effective

from the first week of April 2025.

Cabinet:

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

2.     Agree that the rents chargeable for tenants in general needs Council properties owned by the London Borough of Havering be increased by 2.7% from the week commencing 7^th April 2025.

3.     Agree 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 2.7% from the week commencing 7^th April 2025.

4.     Noted the full annual rental charge will be billed over 48 weeks of the financial year and to agree the four weeks when rents will not be collected during 2025/26 are: the week commencing of 25^th August 2025; 15^th December 2025; 22^nd December 2025 and the 30^th March 2026.

5.     Agreed that service charges and heating and hot water charges for 2025/26 are as detailed in section 2.11 to 2.23 of this report.

6.     Agreed that charges for garages should be increased by 2.7% in 2025/26 as detailed in section 2.9 of this report.

7.     Agreed that the service charge for the provision of intensive housing management support in sheltered housing for 2025/26 shall be as detailed in section 2.24 of this report.

8.     Agreed the Supported Housing Charge for HRA Hostels as detailed in section 2.30 of this report.

9.     Agreed that the rent charge to shared ownership leaseholders is increased in line with current lease conditions as detailed in paragraph 2.8 of this report.  

10.Agreed that the Care-line and Telecare support charge should be increased by 2.7% for 2025/26 as detailed in section 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 – 4.14 and Appendix 1b of this report and refer it to Full Council for final ratification.

Overview & Scrutiny Board – Comments To Cabinet on Budget & Related Papers

Following its meeting on 29 January 2025, the Overview and Scrutiny Board submits the following comments to Cabinet and requests that Cabinet responds to these at its meeting on 5 February 2025.

HRA Business Plan Update, Budget 2025-26 and Capital Programme 2025/26 – 2029/30

1.     Further details should be given of the impact of the rise in National Insurance contributions. The Board is concerned over any potential shortfall in government funding designed to mitigate this.

·        Response: The additional National Insurance contribution cost equates to approximately £135k/year for the HRA.  The Council understands that the Ministry of Housing, Communities and Local Government will fund this through additional grant contributions, although any future shortfalls would need to be funded through efficiencies and will need to be apportioned between the HRA and the General Fund.