Councillor Johnson introduced the report and outlined how it considered rent and charges for the coming financial year, to ensure that HRA stock could be financed and maintained. He highlighted comments made by the Housing Overview and Scrutiny Committee in section 7 of the report, and stated that they had disagreed with the proposed increase in rent and service charges. He felt that these increases were necessary as they improved the quality and quantity of HRA stock. Councillor Johnson then compared current rents, which averaged £87 per week in 2019, with average rents in 2015/16, which had averaged £90.18 week. He stated that even with the proposed rent increase of an extra £2.36 per week for residents, rental costs would still be less than in 2015/16 and would be the lowest in Essex. He highlighted that the extra money raised through rent increases would be used to fund projects such as external decoration, new door entry systems to increase security, and garage renovation or regeneration to decrease the amount of anti-social behaviour. He stated that there had been lots of consultation with residents regarding the proposed rent and service increases, including with the Tenants Panel, and eight face-to-face consultation sessions attended by the finance and housing teams, which had been visited by 113 residents. He highlighted that these increases were necessary to ensure a viable HRA budget, and ensure that all tenants lived in safe and secure accommodation.

The Leader opened discussions and stated that HRA rent had increased under the Labour administration, even though central government had mandated year-on-year rent decreases. He highlighted that if Cabinet agreed Housing Overview and Scrutiny Committee’s recommendations to not increase rent and service charges, then the Council would not be able to build as many new council homes, undertake repairs, or facilitate new housing projects, as the HRA would lose £2.3million income in 2020/21. He understood that some residents might find it difficult to pay the extra rent increase, but Thurrock still had the lowest rents in Essex, and HRA rents were cheaper than in the private sector. Councillor Maney agreed that the rents should be increased, as HRA rents were cheaper than private sector renting. He queried why non-council tenants that paid rent on garages appeared to receive a cheaper rate than council tenants and the Leader replied that an answer would be provided in writing. Councillor Watkins stated that residents depended on Thurrock services and policies, and the proposed rent increase would help to fund these necessary housing services.

RESOLVED: That Cabinet:

1. Agreed the changes included in the base budget for 2020/21.

2. Agreed an increase in domestic rent of 2.7% in line with the 30-year HRA business plan from 6 April 2020.

3. Agreed a 2.7% increase in service charges for 2020/21.

4. Agreed the Leaseholder charges for Homeownership services, as detailed in paragraph 5.8.

5. Agreed the changes to garage rents, as detailed in paragraph 3.11.

6. Agreed the approval process for specific acquisitions that affect the HRA, as detailed in paragraph 4.5.

7. Considered the recommendation made by the Housing Overview and Scrutiny Committee, as set out in Section 7.