Agenda item

6.1

The Committee received a report of the Executive Director, Communities, which provided an annual review of the Housing Revenue Account (HRA) Business Plan, giving details of progress against some of the key themes, as well as looking forward to this year’s review and the identification of risks.

6.2

The report was introduced by Janet Sharpe (Director of Housing and Neighbourhood Services) and presented by Liam Duggan (Manager, Housing Business Plan Team).  The first half of the report considered each chapter of the Business Plan in turn and progress made over the last 3 years.  Whilst the second half considered the impact of the Government’s recently announced rent reductions, as set out in the Chancellor’s Summer Budget, on the HRA and the Council’s response to it.

6.3

Members made various comments and asked a number of questions, to which responses were provided as follows:-

·                Discussions with officials from the Department for Communities and Local Government (DCLG) had revealed that proposals on security of tenure would be contained within the forthcoming Housing Bill.  In some parts of the country there was already a preference for fixed term tenancies, for a period of say five years, which were not renewed if the property was not felt to be appropriate for the tenants.  The Chancellor’s Summer Budget announcement indicated a move away from lifetime tenancies and the Bill would need to be carefully considered once tabled.   When the contents of the Bill had been considered, a further report would be presented to the Committee.

·                In relation to income, the Council was heavily dependent on rents, both for properties and garages.  This was supplemented by a small amount of service charges for such items as burglar alarms, furnished accommodation, the district heating charge and communal services for leaseholders.  One opportunity for income generation would be to apply service charges to tenants.

·                Officers had started to plan for the installation of photovoltaic panels on Council housing roofs, but the announcement by the Government, on 27^th August, of its intention to dramatically reduce the subsidy (Feed in Tariff) rates payable for new photovoltaic installations, from January 2016, presented a significant viability risk to the Business Plan.  Requests from tenants to have them installed through private firms were always agreed and officers were working with colleagues in Legal Services, with a view to developing a scheme for the installation of photovoltaic panels using private firms.

·                The lifecycle for heating systems was 30 years and 15 years for boilers, although systems were sometimes declared obsolete when parts were no longer available.

·                The Gateway Project had provided housing for 600 vulnerable individuals and families who were asylum seekers and the Government had asked the Council to take 50 families of Syrian refugees, with funding being provided.

·                If damage to properties by previous tenants was wilful, a record of this was taken and attempts were made to recover the costs.  It was hoped that the Housing+ operating model would improve the gathering of evidence in this regard.

·                If Members wished to submit questions in advance of meetings of the Committee, this would be very helpful.  Any Members wishing to do this should do so through the Policy and Improvement Officer.

·                It was easier to house refugee families rather than individual asylum seekers and systems were in place to support them.

·                The commitment to build 75 new Council homes, made in 2013, had been extended to 1000 new/replacement Council homes by 2019/20, which were to be let at both social and affordable rent.  These included 184 new build by the Council and some acquired through developers.

·                A contractor going into administration was a rare occurrence and checks were made to assess their viability.

·                In relation to vacant properties, people were not allowed to bid for what they were not entitled to.  However, if no bids were received, then a first come first served system operated, but affordability was a concern, as were Bedroom Tax issues.

·                A representative from the Gateway Project could be invited to attend a future meeting of the Committee to explain its operation.

6.4

RESOLVED: That the Committee:-

(a)       thanks Janet Sharpe and Liam Duggan for their contribution to the meeting;

(b)       notes the contents of the report and the responses to questions; and

(c)        requests that officers:-

(i)      give consideration to devising an efficient, streamlined system for tenant, resident and leaseholder consultation; and

(ii)     liaise with the Policy and Improvement Officer to arrange an appropriate time to present an item to the Committee on the detail of the forthcoming Housing and Planning Bill and its effects.