Decision details

Housing Revenue Account - Medium Term Financial Plan (MTFP) 2020/21 to 2023/24

Decision Maker: Cabinet

Decision status: Recommendations approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

To propose a Housing Revenue Account for consultation.

Decisions:

The Cabinet Member with the Health and Housing Portfolio introduced the report of the Director of Economic Growth and Neighbourhood Services (previously circulated) requesting that consideration be given to the proposals for the revenue budget, rent levels and service charges for the Council’s Housing Revenue Account (HRA) for the financial year 2020/21,in the context of the HRA Medium Term Financial Plan (MTFP) to 2023/24 and the 30-year Business Plan.

 

The submitted report stated that the key decision to made regarding the HRA was the balance between rent and service charge levels and investment in housing stock; it was the first time since 2016/17, that Local Authorities had the discretion to inflate rents by the Consumer Prices Index (CPI) plus one percent, following four years of compulsory reductions; 68 per cent of tenants would have their rent and services charges covered by benefit payments; the Council’s rent and service charges tended to be much lower than other Social Landlords operating in Darlington; as Central Government had lifted the borrowing cap on the HRA, the Council could now borrow £9m to fund the housing capital programme, which could be supplemented with Homes England grant; and that the Council intended to build 100 affordable homes per annum for the next 10 years.

 

Particular references were made at the meeting as to how the properties were selected for works, such as replacement of doors and windows, and on the viability of building new properties when those properties could be purchased through the ‘Right to Buy Scheme’.  The Cabinet Member with the Health and Housing Portfolio, Director of Economic Growth and Neighbourhood Services and Managing Director responded thereon.

 

RESOLVED - That the following recommendations be agreed for wider consultation, namely:-

 

(a)    an average weekly rent increase of 2.7 per cent for 2020/21 be implemented giving an average social rent of £71.30 and affordable rent of £82.55;

 

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

 

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

 

(d)    the Housing Business Plan, at Appendix 2 of the submitted report, be agreed.

 

(e)    that 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)     that 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 regeneration initiatives as discussed at paragraph 17 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.

 

Report author: Pauline Mitchell

Publication date: 10/01/2020

Date of decision: 07/01/2020

Decided at meeting: 07/01/2020 - Cabinet

Effective from: 18/01/2020

Accompanying Documents: