Agenda item

HRA Rent Setting 2024-25

Meeting of Budget, Cabinet, Wednesday, 14th February, 2024 6.30 pm (Item 125/24)

Decision:

RESOLVED:

1.1. To agree the social rents increase of 7.7% from April 2024 based on the current final year of the government’s Social Housing Rent Policy, (applying September 2023 CPI + 1%)

1.2. To agree the request to set the tenants service charges increase at the same level as the rents (7.7%) for the financial year 2024-25.

1.3. To agree the continuation of the Housing Revenue Account (HRA) hardship fund aimed at assisting tenants who are financially impacted by the 2024-25 rent increase, subject to obtaining a further Direction in appropriate terms from the Secretary of State.

1.4. To agree, the nil increase to the garage rents on the proviso that a full review of the viability of assets is carried out in 2024-25 and reported back to Cabinet.

1.5. To agree the request to set the increase in the caravan site plot charges in line with September CPI of 6.7%.

Minutes:

The Executive Mayor introduced the HRA Rent Setting 2024-25 report, which detailed the process undertaken in setting the rents for 2024-25.

The Deputy Mayor and Cabinet Member for Homes, Councillor Lynne Hale, shared with Cabinet that the report proposed an increase of social rent of 7.7% which was also a similar increase in the tenants service charges, this equates to an average weekly increase of £7.19 on a 1-bedroom property. An estimate of 68% of the council’s tenants were eligible for housing benefits, though the remaining 32% received no benefits who would potentially be at some point in a financial risk as a result of the increase. The continuation of the housing revenue account specific discretionary fund was therefore proposed to remain in place to assist households in financial difficulties, which was set up in 2023/24 and £59,000 pounds in payment to date had been made to 118 residents.

The Shadow Cabinet Member for Homes, Councillor Chrishni Reshekaron, noted that only 2% (97 of the 4795 tenants), had received support in 2023/24 from the HRA discretionary fund who were not entitled to any benefits, and asked what actions would be taken to ensure more tenants were receiving support from the HRA discretionary fund in the next financial year following the decision to increase the rent by 7.7% and the government’s decision to end the household support fund.

The Executive Mayor responded that the action to provide a hardship fund had been put in place which would continue in the following financial year. Officers added that there was a multi-prudent approach in addressing the needs of tenants which included the “get to know your tenant”, and there were other benefits tenants were entitled to access support.

The Executive Mayor in Cabinet RESOLVED: