Decision details

Pursuant to Minute C68(4), the Cabinet Member with the Health and Housing Portfolio introduced the report of the Director of Development and Environment (previously circulated) requesting that consideration be given to proposals for the revenue budget, rent levels and service charges for the Council’s Housing Revenue Account (HRA) for the financial year 2021/22in the context of the HRA Medium Term Financial Plan to 2024/25 and the 30-year Investment Plan.

The submitted report stated that the key decision regarding the HRA was the balance between rent and service charge levels and investment in the housing stock; Local Authorities had discretion to inflate rents by the Consumer Price Index (CPI) pus one per cent, which would result in an average £1.46 increase in weekly rents; Members could opt for a rent reduction or a rent increase of a lesser amount than CPI plus one per; 73% of tenants would have their rent and service charges covered by benefit payments; and that the Council’s rent and service charges tended to be much lower than other Social Landlords operating in Darlington.

It was reported that since Central Government lifted the borrowing cap on the HRA the Council had used the additional capacity to invest in building much needed new homes; in 2021/22 it was planned to borrow an extra £8m to fund the new build programme, to be supplemented with Homes England grant; and it was planned to build 100 affordable homes per annum over the next 10 years.

RESOLVED - That it be recommended to the special meeting of Council scheduled to be held on 18 February 2021, that:-

(a)     an average weekly rent increase of 1.7 per cent for 2021/22, be implemented giving an average social rent of £73.11 and affordable rent of £83.62;

(b)     garage rents and service charges, be increased as shown in Table 3 of the submitted report;

(c)     the budget, as detailed at Appendix 1 of the submitted report, be approved;

(d)     the Housing Investment Plan, as detailed at Appendix 2 of the submitted report, be agreed;

(e)     the Director of Economic Growth and Neighbourhood Services be given delegated powers to proceed with new build schemes for affordable rent using the funding, as identified at paragraph 16 of the submitted report; and

(f)      the Director of Economic Growth and Neighbourhood Services be given delegated powers to acquire dwellings in the private sector as opportunities arise, particularly as part of the regeneration initiatives as highlighted at paragraph17 of the submitted report.

REASON - To enable the Council to deliver an appropriate level of service to tenants to meet housing need and to support the economic growth of the Borough through housing development.