Agenda item

(a)       That the Committee note the HRA budget for 2024/25 as set out in the report;

(b)       That the Committee note the proposed minimum rent increase of 6.5%;

(c)       That the Committee note the proposed garage rent increase of 6.5%;

(d)       That the Committee note the proposed increase in serve charges to full cost recovery; and

(e)       That the Committee note the proposed HRA Capital Programme for 2024/25 as set out in Appendix B of the report.

The Chief Officer (Housing & Communities) and Strategic Finance Manager - Commercial and Housing introduced the draft Housing Revenue Account (HRA) 30-year Financial Business Plan and the proposed HRA Budget for 2024/25.

A detailed presentation was given, which outlined the following areas:-

• Welsh Government (WG) net zero carbon target for social housing;
• FCC pilot to achieve net zero carbon for social housing;
• Net zero carbon social housing - Business case estimate;
• Rents;
• HRA Business Plan - Pressures and Efficiencies;
• Affordability;
• Rents – Impact of setting rents lower than the Welsh Government rent cap;
• Service Charges;
• Reserves;
• Summary

Councillor Rosetta Dolphin commented, that whilst she understood the need to raise rent levels, she was concerned around the proposed increase to aerial costs, outlining the current cost and that contract holders were not allowed to procure their own aerials in order to bring the costs down.  The Service Manager – Housing & Assets advised that contract holders were not permitted to install their own aerials as health and safety needed to be adhered to.  The cost of the aerial included a broad package including Sky, FM radio etc.  The Council entered into an agreement with a company many years ago that had been the most cost effective at the time for a rental hire purchase.  The contract would be coming to an end over the next few years and other options would be explored to help reduce costs.  Aerial costs could be reviewed separately. 

Councillor Bernie Attridge queried the information listed within the section on the Welsh Housing Quality Standard 2 (WHQS2) and asked whether many of the improvements had been accounted for as part of the works carried out under the Welsh Housing Quality Standard (WHQS).  He commented on the service charges and asked whether officers felt that tenants were receiving value for money and provided an example where services where being used by non-tenants at a complex within his ward.  He raised concern around the rent increase which he felt was excessive during the current cost of living crisis and would impact hard working tenants who were not eligible for benefit assistance.

The Service Manager – Housing & Assets advised that many of the improvements for WHQS2 were contained within the current WHQS maintenance programme.  The WHQS would focus on de-carbonisation measures to reduce running costs for tenants, and this would be financed through rental income.  There had been a great deal of investment in housing stock over the previous years but WG were now seeking Local Authorities to move to energy efficiency works and produce a business plan to meet their de-carbonisation agenda.  In relation to service charges, it was proposed that a review be undertaken on all communal washing areas across the County. 

In relation to the comments around the proposed rent increase, the Chief Officer (Housing & Communities) said that there was a need to balance investment with affordability and this was one of the reasons that a hardship fund had been set up which would be targeted at tenants who paid partial or full rent and were not eligible for benefit assistance. 

The recommendations, as outlined within the report, were moved by Councillor Ted Palmer and seconded by Councillor Geoff Collett.

RESOLVED:        

(a)       That the Committee note the HRA budget for 2024/25 as set out in the report;

(b)       That the Committee note the proposed minimum rent increase of 6.5%;

(c)        That the Committee note the proposed garage rent increase of 6.5%;

(d)       That the Committee note the proposed increase in serve charges to full cost recovery; and

(e)       That the Committee note the proposed HRA Capital Programme for 2024/25 as set out in Appendix B of the report.