Decision details

The Assistant Director (Housing and Investment) was requested to submit a report to the Executive in the Autumn of 2020 in respect of the outcome of Housing Service Charges Review to be conducted in the Summer, prior to the charges being built into the 2021/22 Housing Revenue Account Budget.

The Executive noted that the discount level for Right to Buy properties had virtually doubled over the past few years, thereby increasing the difficulty for Local Authorities to build new properties funded from capital receipts.

The Executive supported an additional recommendation requesting officers to write to the Secretary of State (MHCLG) to request that new build right to buy receipts that are projected to be returned in the last quarter of 2019/20 (estimated at £790,000) are not returned to the Government, but used to increase funding for the Council’s ambitious house building programme, such as Kenilworth or other pipeline programmes.

It was RESOLVED:

1.         That HRA dwellings be increased, week commencing 1 April 2020, by 2.7% an average increase of £2.56 for social rents £4.17 for affordable rents and £3.16 for Low Start Shared Ownership homes per week. This has been calculated using the rent formula, CPI +1% in line with the Government’s rent policy as set out in Paragraph 4.1.1. of the report.

2.         That the rent policy update to reflect the rent increase guidance of CPI+1%, (revised from a minus 1% rent reduction excluding LSSO properties) agreed at the December 2020 Executive, be confirmed.

3.         That Council be recommended to approve the 2020/21 HRA budget, as set out in Appendix A to the report.

4.         That the revised 2019/20 HRA budget, as set out in Appendix A to the report, be approved.

5.         That Council be recommended to approve the HRA Fees and Charges, as outlined in Appendix C to the report.

6.         That Council be recommended to approve the 2020/21 service charges.

7.         That Council be recommended to approve the minimum level of reserves for 2020/21, as shown in Appendix E to the report.

8.         That the contingency sum of £250,000 within which the Executive can approve supplementary estimates, be approved for 2020/21 (unchanged from 2019/20).

9.         That Council be requested to note the comments from the Overview and Scrutiny Committee, as set out in the report.

10.      That officers write to the Secretary of State (MHCLG) to request that new build right to buy receipts that are projected to be returned in the last quarter of 2019/20 (estimated at £790,000) are not returned to the Government, but used to increase funding for the Council’s ambitious house building programme, such as Kenilworth or other pipeline programmes.

Reason for Decision:  As contained in report.

Other Options considered:  As contained in report.