Issue - meetings

A report from the Executive Director of Resources / Executive Director of Place is attached.  (Key decision – reference number 5499)

Councillor George Savva (Cabinet Member for Social Housing) introduced the report of the Executive Director Place reviewing the Housing Revenue Account (HRA) Business Plan to ensure the strategic priorities of the service are met. The effects of inflationary pressures were highlighted, particularly on the building programme, and in increased homelessness pressures. All London boroughs were similarly affected and the GLA was pressing for better funding arrangements to sustain housing delivery.

DECISION:  The Cabinet agreed to:

Approve:

1.  The revised development programme and hurdle rates for schemes.

2.  The next five years Right to Buy programme expenditure of £94.1m.

3.  The acquisitions programme and delegate authority to the Director of Housing and Regeneration for each purchase within the agreed financial parameters outlined in the report and in consultation with the Director of Finance (Capital).

Note:

4.  The revised 10-year HRA Capital Programme budget for investment in existing council homes.

5.  The updated HRA Business Plan and financial assumptions on which we will ensure an affordable and viable 30-year plan.

6.  The HRA borrowing requirement of £304m over the next 10 years.

7.  The social housing rent increase was agreed at the Autumn Budget. Rents, subject to approval, will increase by 7% in 2023-24, in line with Government’s imposed rent cap. Approval will come forward as part of the HRA rent setting report recommended to Council on 8th February 2023.

8.  The proposed increase in rent charged on shared ownership properties from 2.75% to 3%, approval will come forward as part of the HRA rent setting report recommended to Council on 8th February 2023.

9.  The designation of some sheltered housing blocks and the corresponding impact on service charges.

10.  The increase in borrowing interest rates and long-term assumption taken in the Business Plan, and impact to the HRA business plan.

The report sets out the options considered, if any, and the reasons for the recommendation and the decision.

(Key decision – reference number 5499)