Issue - meetings

This item is due to be pre-scrutinised at a meeting of the Budget Scrutiny Working Group scheduled to take place on 2^nd January 2024.  Any recommendations in respect of this report, subject to the endorsement of the Overview and Scrutiny Committee, will be reported to the Executive Committee in a supplementary pack for this meeting.

The Portfolio Holder for Housing and Procurement presented the HRA Rent Setting 2024/25 report for the consideration of the Executive Committee.

Members were informed that there had been detailed discussions regarding the level at which rents should be set to increase for the financial year 2024/25.  It was stated that rent increases capped at a rate of CPI plus 1% which would equate to 7.7% for this financial year. However, following the discussions and due to the Cost of Living crisis it was agreed that the increase should be set at 7% which was compliant with the above requirements.

The increase would help to fund the current refurbishment works that were currently underway. Members were informed that at present there were 15 kitchen and bathrooms a week being fitted within the Council’s Housing Stock. In addition to this, the increase would enable the continuation of the gas compliance programme of works. It was reported that the Council’s gas compliance rate had recently been at the highest level in the country.

The Committee was advised that the Council’s rent levels were set at between 30-50% lower than private rentals and that 78% of the Council’s tenants received government benefits to help pay the rental fees. The remaining 22% were working and therefore still received the benefits of lowered rental fees compared to the private rental sector.

Once Members had received the presentation there were some queries regarding what the increase in rental fees would be spent on and whether the increase would be used for the pay award recently awarded to Council Staff. It was reported that 40% of the 7% would be used in this way, however the remaining 60% of the 7% would be used for improvements and further building of Social Housing within the Borough.

In concluding the discussion of this report, Officers noted that there was a typographical error at paragraph 3.11 within the report. The report stated the following:

‘The average rent (48 week basis) for 2024/25 charged will be £104.37 and £161 for social and affordable rent properties respectively.’

However, it was confirmed that it should read as follows:

‘The average rent (48 week basis) for 2024/25 charged will be £103.37 and £161 for social and affordable rent properties respectively.’

RECOMMENDED that

the actual average rent increase for 2024/25 be set as 7%.