Agenda item

Report to follow.

Surjit Balu provided an overview of the HRA business plan and advised the Committee that the Housing Stock Condition survey had been an essential component in developing the plan, and 550 properties do not meet the decent home standards.  Standards continue to increase and all works to properties would be addressed through the planned capital works programme as the business plan proceeds. 

Angie Marshall, Abovo-Consult provided details of financial aspects of the report and the bespoke HRA model which allowed cashflow projections to be made over the next 30 years. This was based on data from the Council’s current systems, a new independent stock condition survey carried over the last 12- 18 months and projections for economic assumptions in the social housing sector. 

The plan provided the ability to stress test, for key dynamic risks such as the borrowing rate and changes in Government legislation regarding Social Housing. Officers had taken a safe and prudent approach when developing the business plan, with a balance between borrowing, developing, and improving the housing stock.  The agreed minimum £2m revenue working capital balance would be maintained throughout the plan.   All costs had been included in the plan, however some potential income had not been included because it could not be quantified. The Plan could be amended and updated year on year and during the year, to respond to changes, therefore maintaining a safe and prudent approach.

The Committee commented that this was a safe and prudent HRA business plan.

The Committee received clarity that:

·         The potential income that hadn’t been accounted for was in relation to small strips and pockets of land, any receipts from sales would need to be spent on capital

·         The 30 year cashflow projection were based on a variety of assumptions, inflation used the Governments’ Autumn Statement figures and there had be a prudent approach to rent increases of CPI plus 1%

·         The rents were an essential component of the plan, and if these were not raised this would impact and there would be less to spend on services. If capital was removed properties would not be kept  up to standard ,there would be an increase in void losses and increased cost of responsive repairs.

·         The plan aims for 180 units to be built across the District. Demand  for housing outstrips supply and this is a national position.

·         Flats above a Council owned commercial property could fall under the HRA but this was dependant on the tenancy agreement

·         The Asset Management Strategy was being developed and this would include garage sites.

·         Borrowing for the HRA was from the Public Works Loans Board (PWLB)

Resolved:

That Overview & Scrutiny Committee

·      Commented and recommended the HRA Business Plan for approval to Cabinet,

·      Requested that an annual performance update, including stringent stress testing, be proposed for the work programme for scrutiny in the next municipal year, and

·      Noted the opportunity to improve the Council’s estates, which would improve the life span of our assets and feed into our ongoing work to ‘create great places where people want to live’.