The Tenant & Leaseholder Panel met on Tuesday 9 January 2024 to discuss a proposed rent increase for the upcoming financial year and the financial pressures facing the Housing Revenue Account (HRA). The panel deferred a decision on the minutes of the previous meeting.

Rent Consultation

The primary focus of the meeting was a consultation on a proposed 7.7% rent and service charge increase for social housing tenants from April 2024. This increase is recommended to address significant pressures on the Housing Revenue Account (HRA), including a substantial rise in repair requests, the need to tackle damp and mould issues, and compliance with new regulations like Awaab's Law under the Social Housing (Regulation) Act 2023.

Officers explained that the proposed increase, which would generate an estimated £6.7 million in additional income, is necessary to fund essential improvements and address a backlog of issues. These include:

• Increased Repair Requests: A rise of approximately 1,500 repair orders per month since the mobilisation of new responsive repair contracts in August 2023.
• Damp and Mould Remediation: Significant work is ongoing to address reported damp and mould issues in properties.
• Regulatory Compliance: Meeting the requirements of the Social Housing (Regulation) Act 2023, including Awaab's Law, which holds landlords accountable for providing decent homes. This involves increasing the number of stock condition surveys to inform future planned works.
• Void Property Management: Clearing a backlog of around 120 long-term vacant properties (voids) and ensuring void works are completed to a new lettable standard.
• Legal Disrepair Cases: Addressing approximately 500 legacy legal disrepair cases and new cases within a four-month timeframe, with a commitment to clear the current backlog by August 2025.
• Estates Caretaking and Ground Maintenance: Increasing resources to manage service level agreements (SLAs) and improve the standard of caretaking services.

The meeting also highlighted current revenue and capital expenditure pressures, with a forecast overspend of £12 million in revenue and £5.7 million in capital for November 2023. These pressures are largely attributed to increased responsive repair costs, legal disrepair settlements, and the cost of voids.

Panel members raised several questions regarding the rent increase. Officers clarified that the 7.7% service charge increase applies only to social housing tenants and not to leaseholders or freeholders. They also stated that scaling back services would be necessary if the rent increase was not recommended. The decision on whether to implement the rent increase will ultimately be made by the Cabinet on 14 February, but officers sought the panel's input on tenant priorities.

It was explained that the HRA currently has around £15 million in reserves, a figure that has been bolstered by retrospective transfers from the general fund. Officers also detailed plans to use a hardship fund more effectively by leveraging data to target residents in need, particularly those not currently receiving Universal Credit or Housing Benefit.

The presentation included data on the improved responsive repairs service, showing a significant increase in call volumes and repair orders since August 2023. However, key performance indicators (KPIs) for the contact centre, such as average call wait times and call handling times, indicated areas for improvement. A tenant survey from November 2023 identified repairs, anti-social behaviour (ASB), and caretaking as the top priorities for residents.

Officers confirmed that fire risk assessments are being conducted in line with the Building Safety Act, with a clear timeline set by the government. Data from ongoing stock condition surveys will inform prioritisation of planned investment work. The council is committed to inspecting 40% of its housing stock by March 2024 and 20% annually thereafter.

Regarding legal disrepair cases, the oldest dating back to 2019, officers stated that the proposed budget increase would help prevent properties from reaching disrepair status. The draft budget for the next municipal year includes a 33% increase in the repairs budget, contingent on the 7.7% rent increase.

The panel was informed that emergency repairs have a target completion time of 24 hours, while routine repairs, such as fixing a kitchen tap, are handled differently. The council has appointed a new Head of Caretaking and a communications officer to improve the housing department's social media presence. If the rent increase recommendation were rejected, rents would remain at their current 2023-24 levels.

Date of Next Meeting

The next meeting of the Tenant & Leaseholder Panel was scheduled for Tuesday, 6 February 2024, at 6:30 pm in the Council Chamber, Town Hall, Katharine Street, Croydon CR0 1NX.