The Housing Committee of Stroud Council met on Tuesday 10 December 2024 to discuss the proposed depooling of rents and service charges, the Housing Committee's budget estimates for the upcoming financial years, and a budget monitoring report. The meeting also included updates on performance, new housing developments, and the committee's work programme.

Depooling of Rents and Service Charges

A significant portion of the meeting was dedicated to the proposed depooling of rents and service charges, a process designed to separate the cost of services from the rental charge. This initiative aims to increase transparency for tenants, allowing them to see a clear breakdown of what they are paying for. The report presented outlined service charge modelling and requested approval to implement these changes from 01 April 2025.

The report detailed that the council is facing financial pressures and can no longer subsidise the cost of delivering services from rental income. Depooling is considered best practice in the social housing sector, offering benefits such as fairness, choice for tenants regarding services, and improved service delivery. A consultation with tenants was carried out between 23 September and 20 October 2024, with 398 responses received. While 60% of respondents agreed that separating rents and service charges was fairer, 54% did not agree with the concept of depooling itself, with concerns raised about affordability and the cost of living crisis.

The proposed service charges include an Estate Management Charge, covering grounds maintenance, rubbish collection, and other estate services, at an estimated £1.36 per week. For flat blocks, a charge for communal areas was proposed, with a cap of £12 per week recommended to ensure affordability. To mitigate the impact on tenants in financial hardship, an increase of £100,000 to the Tenant Support Fund for three years was proposed, along with the addition of a two-year fixed-term Housing Officer post.

Housing Committee Budget Estimates and Medium Term Financial Plan

The committee was presented with the revised budget estimates for 2024/25 and the original estimates for 2025/26, alongside the Housing Revenue Account (HRA) Medium Term Financial Plan for 2024/25 to 2028/29. The report indicated an improved financial position for the HRA compared to previous forecasts, partly due to updated data on stock condition and maintenance, local decisions such as depooling, and government announcements.

Key recommendations included a reduction in District Heating charges where applicable from 03 February 2025. The committee was asked to recommend to the Strategy & Resources Committee and the Council the approval of the revised General Fund Housing revenue budget for 2024/25 and the original budget for 2025/26. This also included approval of the Fees and Charges list, the revised HRA revenue budget, and the movement to and from HRA balances and capital reserves.

From 01 April 2025, social rents and affordable rents were proposed to increase by 2.7%, in line with national rent guidance. Garage rents were also set to increase by 2.7%, and landlord service charges were to be as set out in Appendix B. The General Fund Housing Capital Programme for 2024/25 to 2028/29 was proposed for inclusion in the Council’s Capital Programme, as was the HRA Capital Programme for the same period.

The HRA Medium Term Financial Plan showed a forecast of balanced budgets for 2025/26, remaining in line with minimum recommended balances. This improved position was attributed to updated assumptions on rents and Right to Buy sales, as well as significant underspends against budget in 2023/24 and expected for 2024/25.

Budget Monitoring Report 2024/25 Quarter 2

This report provided a forecast outturn position against the General Fund and Housing Revenue Account (HRA) revenue budgets and Capital Programme for the committee's responsibility. The General Fund revenue position indicated an expected overspend of £104k above budget, while the General Fund capital forecast showed an underspend of (£9k).

The HRA was projected to have a revenue underspend of (£1,534k) and a net capital programme overspend of (£1k). The report detailed variances within specific areas, including an overspend in Housing Advice and Homelessness due to increased costs and demand for temporary accommodation, and an underspend in Repairs and Maintenance attributed to delays in radon fan installations and fire risk assessment remedial actions.

Member/Officer Reports

Performance Monitoring Q2: This report provided an update on key performance indicators (KPIs) for the second quarter of 2024/25. Several areas showed positive performance, including improvements in carbon monoxide and smoke alarms, EPC ratings, and complaint handling. However, concerns were raised regarding stock condition surveys and tenant profiling, with improvement plans in place to address these.

Tenant Representatives: Mike Richter, Tenant Representative, provided an update on resident engagement activities. This included feedback from consultations on draft policies such as Aids & Adaptations, Gas Safety, Electrical Safety, Gaining Access, Fire Safety, and Radon Gas. Concerns were noted regarding rescheduling gas safety appointments and the need for tenants to be informed about subcontractors. The depooling of service charges consultation results were also shared, with 398 responses received. Updates were given on scrutiny activities, a Tenant Satisfaction Measures (TSM) results event, and the ongoing annual TSM survey. A new Nature Recovery Project was also launched.

New Homes and Regeneration Programme: An update was provided on the New Homes & Regeneration Programme, detailing the progress on 96 homes remaining for delivery. Contracts were in place with Speller Metcalfe Ltd for three sites delivering 44 new affordable homes, with construction due to start in Spring 2025 and completions from March to August 2026. Planning permission had been secured for 7 new homes at Queens Drive, Cashes Green, and an architect was appointed for three Swedish Timber sites. Discussions were ongoing with tenants and private owners affected by these proposals. The acquisition of 3 homes at Symn Lane, Wotton-under-Edge, was in progress. The report also outlined future pipeline opportunities, including land acquired at James Sleeman Close, Nupend, and redevelopment of land at May Lane.

Work Programme

The committee considered its work programme for the remainder of the 2024/25 financial year. Items scheduled for future meetings included the Housing ASB Policy, Council Plan Refresh, HRA Asset Management Strategy, Tenancy & Estates Management Policy, and the Housing and Homelessness Strategy. Updates were also planned on key action plans, performance monitoring, tenant representatives, and the New Homes & Regeneration Programme. Items to be considered at a future meeting included the Vulnerability Policy, Decant Policy, Compensation Policy, Income & Recovery Policy, and increasing housing supply.