Agenda item

Cabinet

RECOMMENDED THAT COUNCIL 

consider the report and, if satisfied, to:

Housing Revenue Account (HRA): Revenue

(a)         approve the HRA revenue budget for 2022/2023 as shown in the HRA detailed budgets as presented at Appendix A.

HRA: Review of Rents and Charges

(b)         Approve that council dwellings rents for all social rented properties be increased by inflation of 3.1%, measured by the Consumer Price Index (CPI) at September 2021, plus 1%, resulting in rent increases of 4.1%, with effect from 4 April 2022.

(c)         Approve that affordable rents (inclusive of service charge) are reviewed in line with rent legislation, to ensure that the rents charged are no more than 80% of market rent, with rents for existing tenants increased by no more than inflation of 3.1%, measured by the Consumer Price Index (CPI) at September 2021, plus 1%, resulting in rent increases of up to 4.1%.

Local policy is to cap affordable rents (inclusive of all service charges) at the Local Housing Allowance level. As the Local Housing Allowance was increased significantly in late March 2020, affordable rent increases will be capped at 4.1% from April 2022, which is still well below the 2022/23 Local Housing Allowances levels. 

(d)         Approve that garage rents be increased by inflation of 3.1% measured by the Consumer Price Index (CPI) at September 2021, plus 1%, resulting in increase of 4.1%, with effect from 4 April 2022.

(e)         Approve that council dwelling rents for properties with an EPC rating of A or B are increased to 105% of target rent on re-let.

(f)          Approve the proposed service charges for HRA services and facilities provided to both tenants and leaseholders, as shown in Appendix D.

HRA: Capital

(g)         Approve the required level of funding for new build investment between 2022/2023 and 2026/2027 to ensure that commitments can be met in respect of the investment of all right to buy receipts currently retained or anticipated to be received by the authority for this period. This expenditure will take the form of HRA new build, with the 60% top up met by other HRA resources.

(h)         Approve the HRA Medium Term Financial Strategy forecasts as shown in Appendix B.

(i)          Approve the Housing Capital Programme as shown in Appendix C.

Council Agreed to

Housing Revenue Account (HRA): Revenue

A)        approve the HRA revenue budget for 2022/2023 as shown in the HRA detailed budgets as presented at Appendix A.

HRA: Review of Rents and Charges

B)        Approve that council dwellings rents for all social rented properties be increased by inflation of 3.1%, measured by the Consumer Price Index (CPI) at September 2021, plus 1%, resulting in rent increases of 4.1%, with effect from 4 April 2022.

C)        Approve that affordable rents (inclusive of service charge) are reviewed in line with rent legislation, to ensure that the rents charged are no more than 80% of market rent, with rents for existing tenants increased by no more than inflation of 3.1%, measured by the Consumer Price Index (CPI) at September 2021, plus 1%, resulting in rent increases of up to 4.1%.

Local policy is to cap affordable rents (inclusive of all service charges) at the Local Housing Allowance level. As the Local Housing Allowance was increased significantly in late March 2020, affordable rent increases will be capped at 4.1% from April 2022, which is still well below the 2022/23 Local Housing Allowances levels. 

D)        Approve that garage rents be increased by inflation of 3.1% measured by the Consumer Price Index (CPI) at September 2021, plus 1%, resulting in increase of 4.1%, with effect from 4 April 2022.

E)        Approve that council dwelling rents for properties with an EPC rating of A or B are increased to 105% of target rent on re-let.

F)        Approve the proposed service charges for HRA services and facilities provided to both tenants and leaseholders, as shown in Appendix D.

HRA: Capital

G)        Approve the required level of funding for new build investment between 2022/2023 and 2026/2027 to ensure that commitments can be met in respect of the investment of all right to buy receipts currently retained or anticipated to be received by the authority for this period. This expenditure will take the form of HRA new build, with the 60% top up met by other HRA resources.

H)        Approve the HRA Medium Term Financial Strategy forecasts as shown in Appendix B.

I)          Approve the Housing Capital Programme as shown in Appendix C.

Councillor John Williams introduced this report, which considered the Housing Revenue Account (HRA) and the Revenue and Capital Budget for 2022/23. He explained that the HRA was a ring-fenced account and by law could not be subsidised by the General Fund. Following a four year 1% cut in social rents by the Government to 2020, rents had been permitted to rise by the Consumer Prices Index plus one percent. The decision to increase rent by 4.1% would generate over £31.5m out of a total income for the HRA of over £34.5m, which indicated the importance of council house rent. With regards to the Capital Budget, £17m would be invested in building new Council homes and over £7m in improving existing stock, as part of the Council’s Business Plan.

Councillor Nigel Cathcart understood the reason for the increase but expressed concern that rent could increase to 80% of market rent in the future, which those on lower income would struggle to afford. This increase would represent an increase of approximately a third of current rates and he asked for assurance that rent would not be increased to this amount in the future.

Councillor Deborah Roberts expressed concern at the proposed 4.1% increase at time when those on a low income were suffering from other inflationary pressures including the cost of fuel. Councillor Tom Bygott stated that increases in oil and gas prices were likely to result in a steep rise in inflation and this made the additional burden of a rent increase hard to justify. Councillor John Williams explained that the tenants on low incomes could access housing benefits and housing advice from officers. He stated that freezing rents would only benefit those who could afford to pay it and so made little sense.

Councillor Mark Howell explained that he had been responsible for recommending rent rises as Housing Portfolio Holder and he appreciated how difficult the decision was. He concluded that in the current circumstances, including the increase in the price of fuel, he could not support the proposed rent increase.

Councillor John Batchelor explained that 90 new Council homes had been bought this year and 120 more were in the pipeline but funds were needed to invest in new houses. He congratulated the New Build Team on these figures.

Councillor Heather Williams raised concerns regarding fuel poverty facing our residents, including those who used oil to heat their homes. She suggested that some of the surplus for the year of 2021/22 could be used instead of increasing rents by the amount recommended. The Head of Housing confirmed that the Council was able to set the level of rent increase. Councillor Heather Williams explained that she supported the capital recommendations in the report and asked if two votes could be taken, one for recommendations in paragraphs A to F and one for the recommendations in paragraphs G-I. The Chair agreed to this request. Councillor John Williams suggested that the rent increase allowed the capital recommendations to be increased so it was not practical to agree one without the other.

Councillor John Williams proposed and Councillor John Batchelor seconded the recommendations in the report.

A vote was taken on paragraphs A-F and were cast as follows:

In favour (19):

Councillors Henry Batchelor, John Batchelor, Paul Bearpark, Anna Bradnam, Dr Martin Cahn, Dr Claire Daunton, Corinne Garvie, Jose Hales, Bill Handley, Sally Ann Hart, Geoff Harvey, Dr Tumi Hawkins, Peter McDonald, Brian Milnes, Dawn Percival, Judith Rippeth, Bridget Smith, John Williams and Eileen Wilson.

Against (9):

Councillors Ruth Betson, Dr Shrobona Bhattacharya, Tom Bygott, Graham Cone, Sue Ellington, Mark Howell, Bunty Waters, Heather Williams and Dr Richard Williams.

Abstain (1):

Councillor Gavin Clayton.

A further vote was taken on paragraphs G-I and were cast as follows:

In favour (27):

Councillors Henry Batchelor, John Batchelor, Paul Bearpark, Ruth Betson, Dr Shrobona Bhattacharya, Anna Bradnam, Tom Bygott, Dr Martin Cahn, Graham Cone, Dr Claire Daunton, Sue Ellington, Corinne Garvie, Jose Hales, Bill Handley, Sally Ann Hart, Geoff Harvey, Dr Tumi Hawkins, Mark Howell, Peter McDonald, Brian Milnes, Dawn Percival, Judith Rippeth, Bridget Smith, Bunty Waters, Heather Williams, John Williams and Eileen Wilson.

Against (0):

Abstain (2):

Councillor Gavin Clayton and Dr Richard Williams.

Council Agreed to

Housing Revenue Account (HRA): Revenue

A)        approve the HRA revenue budget for 2022/2023 as shown in the HRA detailed budgets as presented at Appendix A.

HRA: Review of Rents and Charges

B)        Approve that council dwellings rents for all social rented properties be increased by inflation of 3.1%, measured by the Consumer Price Index (CPI) at September 2021, plus 1%, resulting in rent increases of 4.1%, with effect from 4 April 2022.

C)        Approve that affordable rents (inclusive of service charge) are reviewed in line with rent legislation, to ensure that the rents charged are no more than 80% of market rent, with rents for existing tenants increased by no more than inflation of 3.1%, measured by the Consumer Price Index (CPI) at September 2021, plus 1%, resulting in rent increases of up to 4.1%.

Local policy is to cap affordable rents (inclusive of all service charges) at the Local Housing Allowance level. As the Local Housing Allowance was increased significantly in late March 2020, affordable rent increases will be capped at 4.1% from April 2022, which is still well below the 2022/23 Local Housing Allowances levels. 

D)        Approve that garage rents be increased by inflation of 3.1% measured by the Consumer Price Index (CPI) at September 2021, plus 1%, resulting in increase of 4.1%, with effect from 4 April 2022.

E)        Approve that council dwelling rents for properties with an EPC rating of A or B are increased to 105% of target rent on re-let.

F)        Approve the proposed service charges for HRA services and facilities provided to both tenants and leaseholders, as shown in Appendix D.

HRA: Capital

G)        Approve the required level of funding for new build investment between 2022/2023 and 2026/2027 to ensure that commitments can be met in respect of the investment of all right to buy receipts currently retained or anticipated to be received by the authority for this period. This expenditure will take the form of HRA new build, with the 60% top up met by other HRA resources.

H)        Approve the HRA Medium Term Financial Strategy forecasts as shown in Appendix B.

I)          Approve the Housing Capital Programme as shown in Appendix C.