Agenda item

Report of the Director of Economic Growth and Neighbourhood Services

The Director of Economic Growth and Neighbourhood Services submitted a report (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 2021/22 in the context of the HRA Medium Term Financial Plan to 2024/25, and the 30 year Investment Plan.

The submitted report stated that Local Authorities had the discretion to inflate rents by CPI plus 1%, which meant an average £1.46 increase in weekly rents. It was also recommended that, where appropriate, service charges had an inflationary increase.

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

RESOLVED - (a) That an average weekly rent increase of 1.7% for 2021/22 be implemented giving an average social rent of £73.11 and affordable rent of £83.62.

(b) That garage rents and service charges are increased as detailed in Table 3 of the submitted report.

(c) That the budget, as detailed in Appendix 1 of the submitted report, be approved.

(d) That the Housing Investment Plan, as detailed in 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 in Paragraph 16 of the submitted report.

(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 highlighted in 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.