Agenda item

A report from the Executive Director – Resources and Strategic Director of Housing and Regeneration is attached.  (Key decision – reference number 5667)

Cllr George Savva (Cabinet Member for Social Housing) introduced the report of the Executive Director – Resources and Strategic Director of Housing and Regeneration, reviewing the Business Plan assumptions for the Housing Revenue Account (HRA) in the light of the external environment, the progress of the strategy for Council Housing and the forward plan for the period. The business plan had been independently reviewed in 2022, and recommendations followed. Investment in new affordable homes was continuing.

In response to Members’ queries, the effect on income of the government imposed rent cap was clarified.

DECISION:  The Cabinet agreed

To Approve:

I. The revised 10-year Development Programme of £615m, delivering c. 2,500 new properties and hurdle rates to assess viability for schemes as set out from paragraph 52 of the report.

II. The next five years RTB programme expenditure of £102.1m as set out from paragraph 70 of the report.

III. The updated HRA borrowing requirement of £357m over the next 10 years as set out in table 2.

IV. A capital fund of £10m to maximise take up of Government/ GLA funding to purchase accommodation to progress decanting and use for temporary accommodation, this will be funded from the existing approved capital programme.

V. The revised 10-year HRA Investment in Stock Programme of £285m for existing council homes and new financial indicators for decision making on investing in future major works to blocks (shown in table 4).

VI. The HRA formalising a voluntary annual repayment of loans to facilitate the repayment of borrowing over a fifty-year loan period as set out in graph 5.

VII. The increase in the Reardon Court development budget from £30.1m to £34m (£3.9m increase), delivering 70 new affordable units, which will be funded from additional GLA grant or substituted schemes within the approved development programme.

VIII. The increase in budget requirement for Dendridge development project from £6.9m to £9.9m (£3m increase) to deliver 22 new affordable units.

IX. Subject to obtaining funding and viability, to progress the retention and refurbishment of Walbrook House, funded from the GLA AHP grant and future Social Housing Decarbonisation fund.

X. Flip up to six 4 bed properties at Bury Street West from Private Sale to Affordable rented properties as set out in paragraph 64 of the report.

XI. To delegate to the Strategic Director of Housing & Regeneration in consultation with the Executive Director of Finance to approve and accept to enter into a grant agreement for SHDF grant funding.

To Note:

XII. Rents, subject to approval by Council in February, will increase by 7.7% (September CPI 6.7% +1%) in 2024-25 for social and affordable rents, approval will come forward as part of the HRA rent setting report recommended to Council on 22nd February 2024.

XIII. The updated debt position in respect of the appropriation of Meridian Water units to the HRA as set out in paragraph 47 of the report.

XIV. Flexibility to use borrowing to fund the regulatory requirement works within the Investment Programme if cashflow is impacted by changes in receipts and revenue budget position.

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