Agenda item

KEY DECISION

 

Following consideration of the officer report, appendices and discussion, the Executive agreed:

 

2.1 To endorse and recommend the recommendations below for approval

by the Council, which include changes for rents and service charges to be used to

prepare the necessary notices to tenants ready for dispatch following the Council

meeting on 20 February 2024 to ensure the 28 days, notice period is met.

 

2.2 That Full Council approve the following:

 

Revenue Budget for 2024/25

2.3 The HRA Annual Revenue Budget for 2024/25 as shown in Appendix A of the report.

 

Rent Setting for 2024/25

 

2.4 An increase of 7.7% to Dwelling Rents in line with the Governments 2019 (and updated 2023) Rent Standard.

 

2.5 An increase of 7.7% for Sheltered and Extra Care housing rents in line with the dwelling rents increase.

 

2.6 An increase of 7.7% for Shared Ownership properties.

 

2.7 An increase of 7.7% on affordable rental tenures, with the rent being reviewed at relet based on 80% of open market rent capped at the LHA rate.

 

2.8 The continuation of rent flex at relet for new tenants within the West of the Council for tenants part of the in-house service (dwelling stock inherited from the legacy Somerset West and Taunton Council) as included in the Rent Charging Policy. This will be levied at basic rent plus 5% for general needs tenants and 10% for sheltered and extra care tenants.

 

2.9 The introduction of rent flex at relet for new tenants within the North of the Council for tenants part of Homes In Sedgemoor (dwelling stock inherited from the legacy Sedgemoor District Council) as included in the Rent Charging Policy. This will be levied at basic rent plus 5% for general needs tenants and 10% for sheltered and extra care tenants.

 

Fees & Charges for 2024/25

 

2.10 An increase in Service Charges for tenants in the North, managed by Homes In

Sedgemoor, based on predicted costs in line with the service charging policy. The

introduction of a transparent 10% service charge management fee. The service

charges are contained in Appendix B of the report.

 

2.11 An increase in Service Charges for tenants in the West, managed by the In-House Service, of

(a) 7.7% for Grounds Maintenance and the Support / Sheltered Housing and Extra Care accommodation services

(b) 6.8% for the Piper Lifeline service

(c) other charges based on actual costs incurred for laundry, heating, communal areas, communal door entry systems

(d) no change to the communal utilities charge

(e) a new charge for exceptional street cleaning

(f) sewerage will increase in line with the

Wessex Water increases for 2024/25 once known. The service charges are contained in Appendix C of the report.

 

2.12 An increase of 7.7% for garage rents.

 

2.13 An increase of 6.7% on temporary accommodation daily rates.

 

2.14 An increase of 6.7% for Meeting Hall hourly rental rates.

 

2.15 An increase of 6.7% for Guest Room charges.

 

Capital Programme from 2024/25

 

2.16 The HRA Major Works and Improvement Capital Programme for 2024/25 of

£8,834,500 for HiS and £19,189,200 for the In-House Service.

 

2.17 To approve a capital budget of £940,000 for the delivery of the Bespoke Homes Phase 2 scheme (North of Somerset). This scheme will deliver 2 large and fully adapted new homes that will be built to low carbon standards in excess of building regulations and extend two existing council dwellings to create larger adapted homes. The proposal is to finance this using an appropriate combination of up to 29.78% subsidy from Homes England and the remainder funded by borrowing. These homes will be let at social rents.

 

2.18 To approve a capital budget of £968,000 for the delivery of the Rochester Road Step Down / Move on Accommodation (West of Somerset). This scheme will deliver 8 new homes and let to vulnerable adults or children such as low complex homeless or children leaving care. The homes will use Modern Methods of construction and be of built to low carbon standards in excess of building regulations. The proposal is to finance this scheme using a combination of Better Care Funding and the remainder funded by borrowing. These new homes will be let at affordable rents and discounted if appropriate.

 

2.19 To approve a capital budget of £2,000,000 for the delivery of the Step Down / Move On Accommodation scheme (West of Somerset). This scheme will deliver 16

new homes for vulnerable adults or children such as low complex homeless or children leaving care. The homes will be built to low carbon standards in excess of building regulations and use Modern Methods of construction. The proposal is to finance this scheme using a combination of Better Care Capital Funding and the remainder funded by borrowing. These new homes will be let at affordable rents and discounted if appropriate.

 

2.20 To approve a capital budget of £2,615,430 for the delivery of the Taunton Road scheme (North of Somerset). This scheme will deliver 11 new homes that will be built to low carbon standards in excess of building regulations. The proposal is to finance this using an appropriate combination of up to 40% subsidy from RTB receipts and the remainder funded by borrowing. These new homes will be let at affordable rents.

 

2.21 To approve a supplementary budget of £656,760 for the current Cricketers scheme (North of Somerset) to fund the projected overspend to complete the scheme. This scheme is delivering 16 new homes and will be built to low carbon standards in excess of building regulations. The proposal is to finance this using Homes England capital grant, Hinkley Point C funding and the remainder funded by borrowing. These new homes will be let at affordable rents.

 

2.22 To approve a supplementary budget of £375,000 for the current Oxford Inn

scheme (West of Somerset) to fund the projected overspend to complete the scheme.

This scheme is delivering 8 new homes will be built to low carbon standards in excess

of building regulations. The proposal is to finance this using an appropriate

combination of up to 40% subsidy from RTB receipts and the remainder funded by

borrowing. These new homes will be let at affordable rents.

 

2.23 To approve a budget return of £20,274,207 for the North Taunton Woolaway

Project Phase D (West of Somerset).

 

2.24 To approve a budget return of £10,499,189 for the Zero Carbon Affordable Homes scheme (West of Somerset).

 

2.25 To approve a budget return of £950,000 for the Tuckerton Lane scheme (North of Somerset).

 

2.26 To approve a budget return of £500,000 for the Purchase of Properties for RTB scheme (North of Somerset).

 

Medium Term Financial Plan 2024/25 – 2029/30

 

2.27 To note the reviewed and updated assumptions in the 2024/25 5-Year Medium Term Financial Plan (MTFP).

 

2.28 To approve the transfer of four dwellings from the General Fund to the Housing

Revenue Account and delegate authority to the Lead Member for Communities,

Housing and Culture and the Section 151 Officer to approve the final land transfer

value.

 

2.29 To approve an increase in the HRA’s strategic approach to generate capital receipts of approximately £1.225m through the sale of uneconomical assets on the open market.

 

30-Year Business Plan

 

2.30 The updated assumptions and figures in the 2024 HRA 30-Year Business Plan as summarised in section 7 of the report.

 

2.31 That members note the challenges and next steps for the HRA and landlord services.

 

ALTERNATIVE OPTIONS CONSIDERED: As set out in the officer report

 

REASON FOR DECISION: As set out in the officer report

 

The Leader of the Council and Lead Member for Governance and Communications, Cllr Bill Revans, invited the Lead Member for Communities, Housing and Culture, Cllr Federica Smith-Roberts, to introduce the report.

 

The Lead Member for Communities, Housing and Culture introduced the report, highlighting: that the report presents the proposed Housing Revenue Account (HRA) Annual Revenue Budget and Capital Programme for 2024/25, including the proposed Rent Setting and Fees and Charges for 2024/25; that the report provided an update on the 5-Year Medium Term Financial Plan (MTFP) and the 30-Year Business Plan Review; summarised the increases and rent flex, fees and charges and capital programme including, bespoke homes schemes that will deliver some new homes for the most vulnerable residents; and the  work with the VCFSE sector to help to continue to provide high quality homes that help address the housing crisis.

 

The Leader of the Council, Cllr Bill Revans, invited comments from other Members present, questions and points raised included: the challenges in meeting the increased and significant demand pressure on housing and homelessness, including building challenges of increased construction costs, increased costs of phosphates mitigation and the national funding crisis; future work on maximising opportunities; diversity of planning in areas of Somerset; the Right to Buy scheme, the net zero ambition and the effect of develop viability claims; the significant uplift in workers at the Hikley Pint C site ; the statutory obligations and the collaborative work of housing and Adult and Children's Services; the bespoke homes cost, development programme and investment; the work on a sustainable HRA budget and business plan; that HRA housing is not avaliable in all areas of Somerset; the building of innovative, affordable and accessible homes inline with national standards;  and the significant pressures and impact on the local housing market and stock as a result of the . Hinkley Point C workforce uplift.

 

The Executive proceeded to vote on the recommendations, which were agreed unanimously.????

 

Following consideration of the officer report, appendices and discussion, the Executive agreed:

 

2.1 To endorse and recommend the recommendations below for approval

by the Council, which include changes for rents and service charges to be used to

prepare the necessary notices to tenants ready for dispatch following the Council

meeting on 20 February 2024 to ensure the 28 days, notice period is met.

 

2.2 That Full Council approve the following:

 

Revenue Budget for 2024/25

2.3 The HRA Annual Revenue Budget for 2024/25 as shown in Appendix A of the report.

 

Rent Setting for 2024/25

 

2.4 An increase of 7.7% to Dwelling Rents in line with the Governments 2019 (and updated 2023) Rent Standard.

 

2.5 An increase of 7.7% for Sheltered and Extra Care housing rents in line with the dwelling rents increase.

 

2.6 An increase of 7.7% for Shared Ownership properties.

 

2.7 An increase of 7.7% on affordable rental tenures, with the rent being reviewed at relet based on 80% of open market rent capped at the LHA rate.

 

2.8 The continuation of rent flex at relet for new tenants within the West of the Council for tenants’ part of the in-house service (dwelling stock inherited from the legacy Somerset West and Taunton Council) as included in the Rent Charging Policy. This will be levied at basic rent plus 5% for general needs tenants and 10% for sheltered and extra care tenants.

 

2.9 The introduction of rent flex at relet for new tenants within the North of the Council for tenants’ part of Homes In Sedgemoor (dwelling stock inherited from the legacy Sedgemoor District Council) as included in the Rent Charging Policy. This will be levied at basic rent plus 5% for general needs tenants and 10% for sheltered and extra care tenants.

 

Fees & Charges for 2024/25

 

2.10 An increase in Service Charges for tenants in the North, managed by Homes In

Sedgemoor, based on predicted costs in line with the service charging policy. The

introduction of a transparent 10% service charge management fee. The service

charges are contained in Appendix B of the report.

 

2.11 An increase in Service Charges for tenants in the West, managed by the In-House Service, of

(a) 7.7% for Grounds Maintenance and the Support / Sheltered Housing and Extra Care accommodation services

(b) 6.8% for the Piper Lifeline service

(c) other charges based on actual costs incurred for laundry, heating, communal areas, communal door entry systems

(d) no change to the communal utilities charge

(e) a new charge for exceptional street cleaning

(f) sewerage will increase in line with the

Wessex Water increases for 2024/25 once known. The service charges are contained in Appendix C of the report.

 

2.12 An increase of 7.7% for garage rents.

 

2.13 An increase of 6.7% on temporary accommodation daily rates.

 

2.14 An increase of 6.7% for Meeting Hall hourly rental rates.

 

2.15 An increase of 6.7% for Guest Room charges.

 

Capital Programme from 2024/25

 

2.16 The HRA Major Works and Improvement Capital Programme for 2024/25 of

£8,834,500 for HiS and £19,189,200 for the In-House Service.

 

2.17 To approve a capital budget of £940,000 for the delivery of the Bespoke Homes Phase 2 scheme (North of Somerset). This scheme will deliver 2 large and fully adapted new homes that will be built to low carbon standards in excess of building regulations and extend two existing council dwellings to create larger adapted homes. The proposal is to finance this using an appropriate combination of up to 29.78% subsidy from Homes England and the remainder funded by borrowing. These homes will be let at social rents.

 

2.18 To approve a capital budget of £968,000 for the delivery of the Rochester Road Step Down / Move on Accommodation (West of Somerset). This scheme will deliver 8 new homes and let to vulnerable adults or children such as low complex homeless or children leaving care. The homes will use Modern Methods of construction and be of built to low carbon standards in excess of building regulations. The proposal is to finance this scheme using a combination of Better Care Funding and the remainder funded by borrowing. These new homes will be let at affordable rents and discounted if appropriate.

 

2.19 To approve a capital budget of £2,000,000 for the delivery of the Step Down / Move On Accommodation scheme (West of Somerset). This scheme will deliver 16

new homes for vulnerable adults or children such as low complex homeless or children leaving care. The homes will be built to low carbon standards in excess of building regulations and use Modern Methods of construction. The proposal is to finance this scheme using a combination of Better Care Capital Funding and the remainder funded by borrowing. These new homes will be let at affordable rents and discounted if appropriate.

 

2.20 To approve a capital budget of £2,615,430 for the delivery of the Taunton Road scheme (North of Somerset). This scheme will deliver 11 new homes that will be built to low carbon standards in excess of building regulations. The proposal is to finance this using an appropriate combination of up to 40% subsidy from RTB receipts and the remainder funded by borrowing. These new homes will be let at affordable rents.

 

2.21 To approve a supplementary budget of £656,760 for the current Cricketers scheme (North of Somerset) to fund the projected overspend to complete the scheme. This scheme is delivering 16 new homes and will be built to low carbon standards in excess of building regulations. The proposal is to finance this using Homes England capital grant, Hinkley Point C funding and the remainder funded by borrowing. These new homes will be let at affordable rents.

 

2.22 To approve a supplementary budget of £375,000 for the current Oxford Inn

scheme (West of Somerset) to fund the projected overspend to complete the scheme.

This scheme is delivering 8 new homes will be built to low carbon standards in excess

of building regulations. The proposal is to finance this using an appropriate

combination of up to 40% subsidy from RTB receipts and the remainder funded by

borrowing. These new homes will be let at affordable rents.

 

2.23 To approve a budget return of £20,274,207 for the North Taunton Woolaway

Project Phase D (West of Somerset).

 

2.24 To approve a budget return of £10,499,189 for the Zero Carbon Affordable Homes scheme(West of Somerset).

 

2.25 To approve a budget return of £950,000 for the Tuckerton Lane scheme (North of Somerset).

 

2.26 To approve a budget return of £500,000 for the Purchase of Properties for RTB scheme (North of Somerset).

 

Medium Term Financial Plan 2024/25 – 2029/30

 

2.27 To note the reviewed and updated assumptions in the 2024/25 5-Year Medium Term Financial Plan (MTFP).

 

2.28 To approve the transfer of four dwellings from the General Fund to the Housing

Revenue Account and delegate authority to the Lead Member for Communities,

Housing and Culture and the Section 151 Officer to approve the final land transfer

value.

 

2.29 To approve an increase in the HRA’s strategic approach to generate capital receipts of approximately £1.225m through the sale of uneconomical assets on the open market.

 

30-Year Business Plan

 

2.30 The updated assumptions and figures in the 2024 HRA 30-Year Business Plan as summarised in section 7 of the report.

 

2.31 That members note the challenges and next steps for the HRA and landlord services.

 

ALTERNATIVE OPTIONS CONSIDERED: As set out in the officer report.???

 

REASON FOR DECISION: As set out in the officer report.?