Issue - meetings

The Executive Director for Environment and Communities presented the HRA Business Plan Update to Enhance the Delivery of the Housing Improvement Plan report.

The Committee was reminded that the Housing Revenue Account (HRA) was a ring-fenced account, primarily funded through rental income and associated service charges. In February 2023, the Executive had approved a thirty-year HRA Business Plan which established the long-term framework for managing and investing in social housing stock. The long-term capital forecasts within the plan had been informed by an independent Stock Condition Survey.

It was reported that Redditch Borough Council had received its regulatory judgement in July 2025 and had been issued with a C3 rating, indicating that substantial improvements were required. The judgement identified significant areas of weakness, including outstanding fire safety remedial actions, backlogs in repairs, gaps in transparency and oversight of performance reporting, and the absence of effective tenant scrutiny arrangements. Officers explained that these findings demonstrated the need for an accelerated approach to delivering the Council’s Housing Improvement Plan.

Members were updated that Savills UK Limited had been commissioned to review the HRA Business Plan to identify any immediate headroom for additional investment, with a focus on expediting high?priority safety works, and to explore options for future growth.

Officers expressed the view that refreshing the Business Plan, followed by annual reviews, would provide the opportunity to increase investment. It was explained that income growth remained dependent on effective rent policy implementation, rent collection and the management of voids and arrears, all of which would be key considerations in future reviews of the Business Plan.

Members were also advised that refreshed data from rolling stock condition surveys would inform future planning. Given that a number of HRA loans were due to mature in the near future, scenario planning was required to manage these risks effectively.

The Committee was then informed of the next steps moving forward. Savills UK Limited would use a revised financial modelling tool to optimise affordable borrowing in order to accelerate delivery of the plan, expedite fire remediation works, and increase the size of the HRA’s housing portfolio. A review of options would be undertaken to identify headroom and capacity to respond to repairs and maintenance demands. The aim was to accelerate the delivery of affordable social housing while maintaining regulatory compliance.

Once the report had been presented, Members discussed the following points in detail:

• The Portfolio Holder for Housing thanked the Executive Director for Environment and Communities for securing the value for money report from Savills UK Limited and welcomed the measures being taken to protect the HRA. It was noted that the Council held a unanimous position in support of the HRA and that Redditch Borough Council was the only authority in the county to have one.
• Members discussed the key highlights of the report.
• It was noted that a loan repayment of fifteen million pounds was due in 2027, reinforcing the need to invest in property acquisition to generate additional income. This would also increase the  ...  view the full minutes text for item 133