Agenda item

Report of the Director of Economic Growth and Neighbourhood Services.

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 proposals for the revenue budget, rent levels and service charges for the Council’s Housing Revenue Account (HRA) for the financial year 2020/21in the context of the HRA Medium Term Financial Plan to 2023/24 and the 30-year Business Plan.

The submitted report stated that the key decision to be 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 reference was made at the meeting to the importance of building social housing to the best possible standard and to the investment being made in the housing stock.

RESOLVED – That it be recommended to the special meeting of Council at its meeting scheduled to be held on 20 February 2020, that:

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

(d)    the Housing Business Plan, as detailed 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 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.