Purpose

Cabinet is
recommended to note:
 

(1)  
legislative changes affecting HRA; the
risks and pressures on the account; and

(2)  
approve the 2024/25 HRA Budgets and Rent
Setting Proposals
 

Content

Cabinet:

(1)           
agreed a HRA dwelling rent increase of 7.7%
(September CPI + 1%) in line with The Social Housing
Regulator’s Rent Standard and agreed that on average rents will increase by £9.10 from £118.19
to £127.29 per week, with effect from 1st April
2024;

(2)           
agreed the level of tenant service charges, as set
out in paragraph 3.9 of the report, to recover costs from tenants
receiving the service;

(3)           
agreed an increase in garage rents of 10%
(£1.55) for residents and 20% (£3.10) for
non-residents, from 1st April 2024;

(4)           
noted the increase in shared ownership rents will be
made in line with the provisions of the relevant lease;

(5)           
reviewed and agreed the proposals for the HRA Budget
for 2024/25, as set out in section 3.4 of the report;

(6)           
agreed to increase the rent and service charges for
sheltered accommodation by 7.7%, in line with rents for general
needs council housing;

(7)           
agreed to continue to link temporary accommodation
rent charges to Local Housing Allowance (LHA) levels;
and

(8)           
agreed to increase charges for travellers’
sites by 7.7%, in line with HRA dwelling rents.
 

Options & Alternatives Considered

The 2023/24 Rent Cap resulted in a £2.5m
reduction in income collected within the HRA in the current year.
The reduction is compounded for future years and, therefore,
affected the resources available for capital investment. The effect
of a second below inflation increase would further reduce the
resources available and impact how effectively the Housing service
and could manage and invest in the borough’s housing
stock.
Alternative rent increases were considered in setting the
budget, but any reduction to the rent policy set by The Regulator
of Social Housing would result in a requirement for additional
savings to be made, which would impact on the services provided to
tenants. A reduction to the Rent Standard would also have a
long-term impact on future rent levels and therefore
income.