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1.1       
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)
 
1.2     Noted that
decisions 1.3 - 1.8 below 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).
 
1.3     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.
 
1.4     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.
                  
1.5     Agreed to
increase garage rents by £1 a week, equivalent to between 7%
and 9% depending on garage tier (section 4.6.2)
 
1.6     Noted that
even with these proposed increases, the HRA will still be under
significant financial pressure.
 
1.7
    Agreed the following
proposals, which address the financial pressure on the HRA (section
4.7).
 
1.7.1 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.
 
1.7.2 To extend the current policy of allowing relets at formula
rent +5% for five further years from 2026/7.
1.7.3 To review funding the two tenant management organisations
(Walpole and River Heights), noting their high costs compared to
other social homes.
 
1.7.4   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
 
1.7.5 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.
 
1.7.6 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.
 
1.7.7 To agree the rent changes from 7 April 2025 for TA
properties, as set out in 4.7.2.  This
decision will impact both HRA and General Fund TA
properties.
 
1.8     Agreed to
funding of £200,000 for the Hardship Fund in 2025/26, to
support tenants in financial difficulty (section 4.8)
 
1.9
    Noted the financial risks
and mitigations in section 4, including the deficits highlighted in
section 4.2 alongside the comments of the Director of
Resources.
 
1.10   Noted that the report was
presented to the Overview & Scrutiny Committee on 30 January
for pre-decision scrutiny, and they provided no comments to
Council.