The Housing Overview and Scrutiny Committee of Shropshire Council met on Wednesday 23 September 2026. The committee discussed the draft Housing Revenue Account (HRA) Policy and the proposed review of the Shropshire Council Allocations Policy and Scheme. An overview of the government's National Plan for Homelessness and its implications for Shropshire was also presented.

Housing Revenue Account (HRA) Business Plan

The committee reviewed the draft Housing Revenue Account (HRA) Policy, which has been developed following an independent review of the HRA. The HRA is a ring-fenced account that manages the council's council homes, funded by tenants. The draft policy aims to provide a clear framework for managing the HRA, ensuring its financial sustainability and compliance with regulations. Key principles include prioritising tenants, maintaining the statutory ring-fence, ensuring long-term sustainability through a 30-year business plan, and adhering to regulatory compliance. The policy also outlines golden rules for managing reserves, borrowing, and debt.

During the discussion, councillors raised questions about the £174 million borrowing cap, the repayment of principal sums on loans, and confidence in achieving the policy's golden rules. Officers explained that the borrowing cap acts as an upper limit for sustainability and that principal repayment on HRA loans is voluntary, unlike in the general fund. They also detailed the robust monitoring processes in place with STAR Housing, the council's arm's length management organisation, to ensure compliance.

Concerns were raised about the HRA business plan replacing a previous one approved only 18 months prior, and the difficulty in comparing the two due to presentation differences. Questions were also asked about the stock data within the business plan and the projected deficit for the current year, attributed to the Revenue Contribution to Capital Outlay (RCCO). Officers clarified that a full refresh of the HRA business plan, including detailed stock numbers and capital expenditure, would be presented to scrutiny in November. They explained that the current deficit projections are largely due to increased investment required to meet new regulatory compliance standards, such as Awaab's Law, within tight timelines.

The committee also discussed the potential for selling unviable council homes and reinvesting the proceeds, acknowledging the current market challenges in achieving sufficient value for such disposals. The need for a clear breakdown of costs related to regulatory compliance, distinguishing between mandatory and permissive guidance, was also highlighted.

Shropshire Council Allocations Policy and Scheme

The committee received a report on the proposed review of the Shropshire Council Allocations Policy and Scheme. The current scheme, managed through Shropshire HomePoint, has a significant housing demand with nearly 5,000 households on the register and only 855 lettings in the previous year. The review aims to ensure the policy remains lawful, transparent, fair, and aligned with current housing needs, homelessness pressures, and the council's wider housing strategy.

Key areas for discussion included:

• Open vs. Closed Register: Whether the housing register should remain open to applicants with no local connection or move towards a closed register, with statutory exemptions for vulnerable groups.
• Rural Allocation Criterion: The potential for a clearer rural allocation criterion to support local people accessing homes in their communities.
• Income, Savings, and Asset Thresholds: Whether the current £50,000 household income threshold and £200,000 savings/asset threshold remain appropriate.
• Direct Nominations and Exceptional Matches: Strengthening the council's ability to make direct nominations or exceptional matches for safeguarding or adaptation needs.
• Governance and Transparency: Improving transparency, audit trails, and review rights for decisions made under the policy.

A proposal was made and supported to establish a task and finish group to examine these areas in more depth, acknowledging the complexity and the need for evidence-based recommendations. The group will aim to work quickly to address the urgency of the issues, particularly for those on minimum wage struggling to access the housing list.

Statutory Duties: Homelessness - A National Plan for Homelessness

The committee received an overview of the government's National Plan for Homelessness and its implications for Shropshire. The plan aims to make homelessness rare, brief, and non-recurring, with a focus on prevention, partnership working, and accountability. Shropshire Council's existing strategy aligns with much of this national direction, with progress already made in prevention, reducing reliance on bed and breakfast accommodation, and improving pathways to secure and sustain housing.

However, the report highlighted that homelessness is a complex issue requiring a whole-council and whole-system approach, involving collaboration across housing, social care, health, education, and the voluntary sector. Shropshire has seen positive improvements in prevention outcomes, with the proportion of households approaching early enough for a prevention duty increasing significantly. However, challenges remain, particularly with increasing rough sleeping figures and outcomes for households with multiple support needs.

The committee was asked to consider the proposed local delivery plan and the level of ambition for local targets. The national plan includes six outcome measures against which progress will be assessed. Shropshire's baseline position shows strengths, such as no families in bed and breakfast accommodation beyond the statutory limit and a lower-than-average proportion of households with children in temporary accommodation. However, rough sleeping figures and outcomes for those with multiple support needs require further attention.

Discussions focused on the financial implications of the national plan, the flexibility of funding, and the accuracy of rough sleeping data in a rural area. Officers confirmed that Shropshire has been allocated approximately £950,000 over three years for the rough sleeping programme, with flexibility in how it is used. The committee expressed support for the proposed task and finish group to review the allocations policy and welcomed the honesty in the report regarding both successes and challenges in tackling homelessness.

Work Programme

The committee noted that the HRA Business Plan would be returning in November. A suggestion was made to add fostering and its housing implications to the work programme, as housing is a significant barrier for potential foster carers needing extra bedrooms or larger homes. The committee also agreed to add a discussion on Houses in Multiple Occupation (HMOs) and the consideration of an Article 4 direction to the work programme, following concerns raised about the proliferation of HMOs in areas like Oswestry. The task and finish group for the allocations policy will be set up rapidly to ensure focused progress.

The meeting concluded with a move to a closed session to discuss exempt minutes.