Agenda item

Report of the Assistant Director – Housing and Revenues and Presentation by Head of Housing

The Assistant Director – Housing and Revenues submitted a report (previously circulated) requesting that consideration be given to the Housing Revenue Account (HRA) – Medium Term Financial Plan (MTFP) for 2025-26 to 2028-29 (also previously circulated) prior to recommendation by Cabinet on 4 February 2025 and Council on 20 February 2025.

The Assistant Director Housing and Revenues provided an update on the key decisions within the HRA for 2025-26 which included a proposed revenue expenditure of £30.186M, a proposed Capital Programme of £30.092M and a proposed weekly rent increase of 2.7 per cent.

It was reported that Councils had the discretion to inflate rents by CPI plus 1 per cent, which would mean a rent increase of 2.7 per cent for 2025-26. Members were remined that a 6.7 per cent increase was agreed in February 2024 for the current financial year, although rents could have been increased to 7.7 per cent.

Considering the current economic pressures faced by tenants and balancing this with increased costs of maintaining and improving Council housing and the need to deliver the Councils ambitious capital and energy efficiency programmes, an increase of 2.7 per cent was recommended which equated to an average £2.81 increase in weekly rents. Members were also informed that Cabinet also recommended that service charges be increased by an appropriate inflationary amount.

A presentation accompanied the report, outlining the consultation exercise undertaken with Darlington Borough Council tenants in relation to the proposed rent charges for 2025/2026.

Discussion ensued regarding the use of text messages as means of communicating with tenants, which has seen an increase in responses from tenants; following concerns regarding those struggling to pay rent, Members were informed that there was a range of mechanisms in place to support those tenants, including the tenancy sustainment team; and there was acknowledgment for the need for improved community engagement.

Discussion also ensued regarding the budget for responsive repairs and maintenance and roofing repairs and clarity was sought in relation to lifeline services.

Members expressed their thanks to the Housing Team for their hard work, with particular reference made to the significant increase in consultation responses.

RESOLVED – That this Scrutiny Committee supports the average weekly rent increase of 2.7 per cent for 2025/26, increases to the garage rents and services charges, the revenue budget, Housing Business Plan and capital programme, as appended to the submitted report.