Purpose

To agree the HRA strategy,
budget and rent setting

Content

Noted
that the forecast 2024/25 closing balance position
of the Housing Revenue Account (HRA) is to reduce to £4.7m
as a result of the Q3 2024/25 projected
overspend of £3.1m, which would take the HRA very close to
its minimum working balance of £4.0m (section 4.1 of the
report)
 
Noted
that decisions 1.3 - 1.8 of the report still leave a
forecast Minimum Working Balance deficit for 2025/26 and therefore
in order to ensure that balances are
deemed adequate, no HRA voluntary Minimum Revenue Provision (MRP)
will again be provided in 2025/26, resulting in both a balanced
budget and adequate Minimum Working Balance. The Treasury
Management and Capital Strategy report refers to this in more
detail (Cabinet 17 February 2025).
 
Agreed
to follow the national rent policy, as set out in
the Rent Standard, and to approve an increase in rents for social
homes by 2.7% (September's CPI + 1%), the maximum allowed by
government. This will increase the average weekly rental charge by
£2.97 to an average rent per week of
£112.93.
 
Agreed
to increase Tenant Service Charges for council homes
by 2.7%, resulting in an increase of 47p per week. This will
increase the average service charge to £17.72.
 
Agreed
to increase garage rents by £1 a week,
equivalent to between 7% and 9% depending on garage tier (section
4.6.2 of the report)
 
Noted
that even with these proposed increases, the HRA
will still be under significant financial pressure.
 
Agreed
the following proposals, which address the financial
pressure on the HRA (section 4.7 of the report).
 

·       
To rephase the last 10% of spending (£40m of
£400m) on the Capital Programme so it finishes in 2030/31
rather than in 2028/29.

·       
To extend the current policy of allowing relets at
formula rent +5% for five further years from 2026/7.

·       
To review funding the two
tenant management organisations (Walpole and River Heights), noting
their high costs compared to other social homes.

·       
To convert some of the planned council home building
under the Greenwich Builds programme to acquisitions of high
quality new-build homes, resulting in a cost saving and an increase
in new housing delivery. To note that we will continue to deliver a
programme of new Council housing supply through a combination of
direct delivery (Greenwich Builds) and bulk acquisitions

·       
Where possible, to use GLA grant instead of Right
To Buy Receipts (RtB), and where GLA grant is earmarked for
construction to flip this to acquisitions.

·       
To convert to convert an additional 100 homes which
become void for use as temporary accommodation, in order to reduce the use of unsuitable hotel
accommodation for residents in temporary accommodation.

·       
To agree the rent changes from 7 April 2025 for TA
properties, as set out in 4.6.2.  This
decision will impact both HRA and General Fund TA
properties.
 
Agreed
to funding of £200,000 for the Hardship Fund
in 2025/26, to support tenants in financial difficulty (section 4.8
of the report)
 
Noted
the financial risks and mitigations in section 4 of
the report, including the deficits highlighted in section 4.2
alongside the comments of the Director of Resources.
 
Noted
that the report was presented to the Overview &
Scrutiny Committee on 30 January for pre-decision scrutiny, and
they provided no comments to Cabinet.