Agenda item

Cabinet Portfolio: - Housing

Strategic Directorate: - Adult Care, Housing and Public Health

Consideration was given to a report that was submitted for pre-decision scrutiny ahead of the Cabinet meeting scheduled for 21 December 2020 regarding the Housing Revenue Account Business Plan. The Cabinet Member for Housing, the Strategic Director of Adult Care, Housing and Public Health, Strategic Housing and Investment Manager and the Business and Commercial Programme Manager attended the meeting to present the report.

The report stated that the Housing Revenue Account (HRA) recorded all expenditure and income relating to the provision of council housing and related services, and  as such the Council was required to produce an HRA Business Plan that was reviewed annually to set out its investment priorities over a 30 year period.

In introducing the report, the Cabinet Member for Housing noted that despite the challenges that the continuation of right to buy sales presented for the HRA Business Plan, the Council continued to be committed to delivering new affordable housing across the Borough. The Cabinet Member also noted the Council’s continued commitment to, and continued success in ensuring that all Council homes met or exceeded the national decent homes standard.

This report provided a detailed technical overview of the current position of the HRA Business Plan and detailed the reasons for proposed changes. It was noted that the report was to be considered alongside the subsequent report that detailed the proposed 2021-22 rents and service charges.

Members asked for further information on the level of rent arrears that that were currently owed and on the activity that was being taken to recover the money owed. The Business and Commercial Programme Manager advised that there was currently £5million of rent arrears owed, including money owed by former tenants. The Business and Commercial Programme Manager advised that the level of rent arrears owed had reduced by £1million over the last year and not noted that the average level of debt owed by each tenant was around £84. Members were assured that all possible steps were being taken to recover rent arrears, including the writing off of very old arrears where appropriate. The Cabinet Member noted the significant investment that had been made in systems and processes to enable improved management and recovery of rent arrears. Members welcomed the significant reduction in the amount of rent arrears owed.

Members noted the challenges that Universal Credit created for tenants and consequently the Council with regard to paying rent and asked what steps were being taken to reduce the risk of increased rent arrears and possible homelessness for tenants with more tenants claiming Universal Credit, of The Business and Commercial Programme Manager advised that there was significant support available to both new and existing tenants via the Financial Inclusion and Tenancy Support teams to help tenants avoid getting into financial difficulties and to support those who were experiencing problems paying their rent. The Business and Commercial Programme Manager advised that both services were successful in supporting tenants maintain their tenancies and noted that the number of evictions had reduced from the numbers seen in previous years.

Members noted with approval the services that were offered and sought assurance that the services had the capacity to deal with am increase in demand due to the economic impact of the pandemic. The Business and Commercial Programme Manager assured members that the services had the capacity to cope with an increase in demand.

Members noted with concern the challenges that right to buy sales created for the HRA. Members asked whether there should be an increased focus on the development of shared ownership properties by the Council, as these properties would enable the Council to maintain and increase the number of affordable homes, but also give people the chance to move towards the goal of owning their own property. The Cabinet Member advised that the Council had developed with great success some shared ownership properties and agreed with members that shared ownership could be a better option than right to buy for many people who aspired to own their own home.

Members asked for further information on the programme of development of Council owned garage sites for housing across the Borough.  The Strategic Housing and Investment Manager advised that plans for their development were being progressed and that members would be consulted with on developments in their wards in order to ensure that local needs were met.

The Chair thanked the Cabinet Member for Housing, the Strategic Director of Adult Care, Housing and Public Health, Strategic Housing and Investment Manager and the Business and Commercial Programme Manager for attending and presenting the report and answering members’ questions.

Resolved: -

1.    That Cabinet be advised that the recommendations be supported.

2.    That a sub-group of the Overview and Scrutiny Management Board be established to feed into the work being carried out to develop housing on garage sites.