A report from the Director of Finance, Resources and Customer Services and Director of Health, Housing and Adult Social Care is attached. This seeks approval, for recommendation to full Council, of the revenue estimates of the Housing Revenue Account (HRA) for 2014/15 and the updated position on the HRA 30 year business plan. (Key decision – reference number 3855)

(Report No.179)

(8.30 – 8.35 pm)

Councillor Ahmet Oykener (Cabinet Member for Housing) introduced the report of the Director of Health, Housing and Adult Social Care and Director of Finance, Resources and Customer Services (No.179) presenting for approval the revenue estimates of the Housing Revenue Account (HRA) for 2014/15 and the updated position on the HRA 30 year business plan.

NOTED

1.               The proposal to increase rents in line with national social rent policy which would result in an average increase of 4.6% for Enfield tenants, as set out in section 5 of the report. This would equate to an average increase of £4.43 per week.

2.               The comparative rent increase levels of 7 other London Boroughs, Enfield was in the middle of the range of increases. The average London rent increase was 4.9%.

3.               The proposed service charges for 2014/15; the sheltered housing cleaning charge; leaseholder service charges; and, heating charges as detailed in sections 6, 7, 8 and 9 of the report.

4.               That the updated HRA business plan was detailed in Appendix 9 to the report. The business plan represented a balanced budget with the proposed rent increases.

5.               The temporary accommodation rents set out in Appendix 6 of the report. The rents had not changed from 2013/14.

6.               The Enfield Homes Management Fee outlined in section 14 of the report.

7.               The capital programme for 2014/15 as set out in section 15 of the report. The capital programme for 2014/15 was £63.3m. The Decent Homes funding levels were also noted.

Alternative Options Considered: Two alternatives had been considered; these were not increasing rents in line with the national social rent policy as recommended by the Government and increasing rents above this guideline. These two options were both discounted. If rents were not increased this would mean significant loss of income and would undermine the business plan in future years. The HRA self-financing settlement was based on the assumption that rents were increased in line with national social rent policy. If rents were increased above this policy this would put additional unnecessary financial pressures on tenants.

RECOMMENDED TO COUNCIL that

1.               The detailed revenue estimates of the Housing Revenue Account for 2014/15 be approved.

2.               The rents be increased in line with national social rent policy. This would result in an average increase of 4.6% for Enfield tenants.

3.               All void properties be re-let at target rent.

4.               The level of service charges as set out in Paragraph 6.1 for those properties receiving the services be agreed for 2014/15.

5.               The proposals for increases in other income as detailed in Appendices 2 and 11 of the report be agreed for 2014/15.

6.               The Temporary Accommodation rents as set out in Appendix 6 be agreed for 2014/15 and that authority for any increase be delegated to the Cabinet Member for Housing and Director of Health, Housing and Adult Social Care and the Cabinet Member for Finance and Property and Director of Finance, Resources and Customer Services.

7.               The total HRA capital programme of £63.3m  ...  view the full minutes text for item 7