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Councillor Beavan, Deputy Leader and Cabinet Member with responsibility for Housing, introduced report ES/1842 which related to the Housing Revenue Account (HRA) Budget Report 2024/25 to 2027/28.
The report provided the relevant information to enable Cabinet to review, consider, and comment upon the Council’s proposed 2024/25 to 2027/28 Housing Revenue Account (HRA) budget, before making recommendations to Council on 21 February 2024 as required under the Budget and Policy Framework.
Councillor Beavan talked through some of the financial information provided in the attached report. The report detailed how rents and service charges are determined, and the proposed increases for 2024/25 were set out for approval.
Councillor Beavan highlighted the 2020 Rent Standards which permitted the Council to increase its rents for at least five years to 2024/25 by up to CPI for September of the previous year, plus 1%.
Due to high inflation, CPI was 6.7% in September 2023, which resulted in social housing landlords having the ability to increase rents by up to 7.7% (6.7% CPI + 1%). In line with government guidance a 7.75 increase was being proposed for 2024/2025 and was deemed necessary for the HRA to meet its’ required investment in the housing stock and delivering the required services tenants.
Councillor Beavan outlined that every five to six years there were 53 Mondays in the rent year and 2024/25 was a 53-week rent year. It was proposed to continue to collect rents over the weeks as normal and still provide two rent free weeks over the Christmas period. To cover the Christmas period, rent would be increased to an average weekly social rent of £96.78 for 2024/2025 an increase of £6.92 compared to the previous year.
Councillor Byatt queried whether there would local companies would be used where possible for future works and would there be a list of who had been commissioned to complete work in the past available.
Councillor Beavan responded to stated that local companies would be used where possible, and a list could be provided if required.
On the proposition of Councillor Beavan, seconded by Councillor Langdon-Morris, it was by a unanimous vote
RESOLVED
That it be recommended to Full Council that it approves:
1. The draft HRA budget for 2024/25, and the indicative figures for 2025/26 to 2027/28;
2. Movements in HRA Reserves and Balances;
3. Proposed rent increase of up to 7.7%. In line with the Rent Standard September 2023 CPI + 1%.
4. Service charges and associated fees for 2024/25;
5. Rent and Service Charges to be charged over a 51-week period unless being used for Temporary Accommodation when a 53-week period will be applied, due to 2024/25 being a 53-week year.
That the following be noted:
6. Projected outturn position for 2023/24;
7. Changes affecting public and private sector housing and welfare;
8. Effects of the cost-of-living crisis to the HRA.