Issue - meetings

As detailed in the recommendations.

            Councillor Hughes introduced the Housing Revenue Account (HRA) 30 Year Financial Business Plan report.

            On 18^th December 2019, Welsh Government (WG) released the Minister for Housing and Regeneration’s decision on the WG Rent Policy for commencement in 2020/21.  The Rent Policy had been set for five years and it was made clear that the rent policy settlement was a maximum amount which could be charged and landlords should consider value for money alongside affordability for tenants, as part of their rationale for setting rents.

            The Rent Policy for Social Housing Rents from 2020/21 set out the following:

·         An annual uplift of up to CPI+1% for five years to 2024/25 using the level of CPI from the previous September each year.  September 2019 was 1.7%.

·         The level of rents for individual tenants could be reduced, frozen or risen by up to an additional £2 over and above CPI+1%, on condition that total rent income collected by the social landlord increased by no more than CPI+1% (2.7%).

The new average rent band proposed by WG was outlined in the report.  A maximum uplift of 2.7% (CPI+1%) would take the average rent paid in 2020/21 to £96.57 which was just above the low end of the target rend band.

The recommended option was to apply an overall uplift of 1.7% to all tenants, and, in addition, apply the transitional uplift of £2 to tenants who were currently under target rent.  This would ensure that no individual tenant would pay more than the maximum allowed under the policy and readdressed the disparity between those rents under and those at target rent and sought to make rent changes to all tenants more equitable.

The proposed garage rent increase for 2020/21 was £1.22 per week with a garage plot increase of £0.20 per week.  Service charges were outlined in the report; In 2019/20 the Council was at 70% service charge recovery for implemented charges and it was recommended that the increase in service charges to take the HRA to full cost recovery should be stepped over the coming two years 2020/21 and 2021/22.

The report also outlined the Councils ongoing investment in its housing stock through the Welsh Housing Quality Standard (WHQS) and new build programmes with a total level of investment in 2020/21 of £30.464M. 

Members welcomed the report and commented on the quality of the Council housing stock which was something to be proud of.

RESOLVED:

(a)       That the HRA budget for 2020/21 be noted;

(b)       That the proposed rent increase of up to 1.7% (plus up to £2) be approved;

(c)        That the proposed garage rent increase of £1.22 per week and a garage plot increase of £0.20 per week be approved;

(d)       That the phased increase in Service Charges recovery be approved;

(e)       That he rationale behind an increased level of reserves to 4% be noted; and

(f)        That the HRA Capital Programme for 2020/21 be approved.