Councillor Muldowney introduced the report and explained that the HRA is the most important tool to provide genuinely affordable homes. Councillor Muldowney stated that this year there is a proposed increase to rents of 2.7%. This is a smaller increase than last year. It is essential to increase rents due to rising costs and inflation. It is important to make sure the HRA is financially sustainable. This budget is about making a difference for our residents and having a safe and affordable home is so important.

Councillor Hooper welcomed the report and stated that the increase in rent is much lower than the private sector and the money is needed to keep the housing stock to a good standard.

RESOLVED:

2.1 Cabinet approved the Rent Flexibility approach of Formula Rent plus 5% for new tenancies in properties governed by formula rent, and 10% for new tenancies in supported housing (as explained in paragraphs 4.4 and 4.5 of this report). Please note this is only applicable in the event of relets.

2.2 Cabinet approved the increase in rents, in line with Government Policy on rents for social housing, (as explained in paragraphs 4.7 to 4.9 of this report) to 2.7%.

2.3 Cabinet approved the increase in Tenant and Leasehold Service charges and other HRA fees and charges for 2025/26, (as explained in paragraphs 4.11 to 4.14 of this report) and detailed in Appendices 1 and 2.

2.4 Cabinet approved the setting of an indicative balanced HRA budget for 2025/26 (as per paragraph 4.34 and Table 3 of this report).

2.5 Cabinet approved the 5-year HRA Business Plan for 2025/26–2029/30 (as per paragraphs 4.35 to 4.38 of this report) as detailed in Appendix 3 and note that this is an extract from the 30-year HRA Business Plan.

2.6 Cabinet noted the ongoing HRA capital programme composed of two main strands, Transforming Homes and the Demolition, Rebuilds and Acquisitions programme of which the next five years are presented at £80m and £104m respectively. Approval of these is sought via a separate Cabinet report that will be presented to February 2025 Cabinet as part of the Council’s overall capital programme.

Reason for the decision: as outlined in the report

This decision is subject to call-in