The Scrutiny Committee - Communities were scheduled to meet to discuss national policy changes to social housing, and the use of Housing Revenue Account (HRA) underspends. The meeting was also scheduled to include a discussion of the committee's work programme.

Use of HRA Underspends

The committee was scheduled to discuss a proposal to redirect £3.377m from the Housing Revenue Account (HRA) reserves into the HRA capital programme for additional stock acquisitions. According to the Use of HRA Reserves for Additional Housing Stock report, the HRA had a year-end underspend of £3.377m in 2024/25, bringing the total HRA reserves to £17.834m, which is £11.971m over the minimum required balance of £5.863m. The report stated that the forecasting of the HRA for 2025/26 is currently a predicted underspend.

The report stated that the HRA would manage the stock through its landlord models, and that it was anticipated that this £3.377m could provide around 15 properties, depending on S106¹ property availability and size. The HRA would also have to pay the usual conveyancing costs and Stamp Duty Land Tax².

In the short term, the new stock would be set aside for Temporary Accommodation to support the challenges in the General Fund (GF) Housing Service. The rates for the use of this stock would be agreed between the GF service and the HRA to ensure a fair charge is made and received, and no property would be used for non-HRA purposes for more than two years.

The report stated that this proposal has the benefit of increasing stock under Somerset Council's ownership, increasing income to the HRA and supporting the General Fund in short term cost control. It also noted that should these demands reduce in future years, the stock will revert to HRA Landlord functions to fulfil a demand in general needs managed through Homefinder Somerset.

The report stated that if this process is proven to work, a business case for a larger investment may be brought forward, potentially with funding from the general fund to remove the need for a time limit.

The Scrutiny Committee were asked to consider recommendations being presented to Full Council on 25th September:

• Approve an increase in the HRA capital programme of £3.377m for property acquisitions, legal and associated purchase costs, and any appropriate refurbishments or alterations, to be funded by HRA Reserves.
• Support the addition of these properties into HRA stock but with a temporary use of up to 2 years for temporary accommodation (General Fund) purposes
• That the final decision on property acquisitions is made by the Executive Director for Community Place and Economy in consultation with Councillor Federica Smith-Roberts, Lead Member for Communities, Housing Revenue Account, Culture, Equalities, and Diversity.
• Delegate to the Chef Finance Officer (Section 151 Officer) and the Executive Director of Community, Place and Economy, in conjunction with the Deputy Leaser of the Council and Lead Member for Finance, Procurement and Performance and the Lead Member for Communities, Housing Revenue Account, Culture and Equalities and Diversity to approve the tenure (social vs Affordable rents) of each property.

National Policy/Regulatory Changes in Social Housing Sector and Housing Development Programme

The committee was scheduled to receive an update from Simon Lewis, Head of Housing, Income and Tenancy Management, and Duncan Havey, Homes in Somerset, on national policy and regulatory changes in the social housing sector and the Housing Development Programme.

The report on National Policy Regulatory Changes in the Social Housing Sector and Housing Development Programme included information on:

• The 10 year rent settlement of CPI³ + 1%.
• £39 billion for new housing, over 10 years, with 60% on social rent homes through Homes England⁴.
• The implementation of Awaab's law⁵ (October 2025).
• Fundamental changes to Right to Buy⁶.
• A raft of consultations including rent convergence, new home standards and energy efficiency.

The report stated that both delivery teams are working together to ensure compliance with Awaab's Law by October, and that key activities underway include:

• Communication with customers.
• Policy and process reviews.
• Technology and data reviews to ensure proven compliance.
• Workforce training (including contractors).
• Reviewing operational capacity (e.g. surveyors, administration).
• Assessing likely costs which will have to be funded from the Housing Revenue Account.

The report also noted that the government is planning to bring forward legislation to implement the following reforms to Right to Buy:

• Increase eligibility requirement from 3 years to 10 years.
• Reduced discounts 5% to a maximum of 15% or £30K (previously 70%/£104K).
• New build exception for 35 years.
• Increased repayment period during which that the council has the right to ask for repayment of all or part of the discount on the sale of property (10 years).
• Extended period in which a council has the right of first refusal to buy back.
• Simplification and increased flexibility when spending RTB receipts.
• Further changes expected including better 'cost floor' protection for properties retrofitted or enhanced (e.g. adapted).

The report stated that there are significant potential changes to the Decent Homes Standard⁷ with substantial cost implications, and that reforms to minimum housing standards will apply to both social housing and private rented sectors (PRS) from 2035-37.

The report also noted that rent convergence is a mechanism to allow an additional increase in rent on those properties that are currently below 'formula rent level', and that the consultation on adding an additional weekly rent charge of £1 or £2 a week to those below formula rent, applied annually until they are at parity with formula rent, recently ended and the outcome is to be announced at Autumn budget statement.

The report stated that a new regulatory standard for competence and conduct will be effective from October 2026, and that it will require housing professionals to have the qualifications, skills, and behaviours needed to deliver high-quality services to tenants and residents.

The report also noted that Residential Personal Emergency Evacuation Plans (PEEPS) from April 2026 will apply to:

• All high-rise (18m+) residential.
• Medium-rise (11-18m) residential buildings with a simultaneous evacuation strategy in place.

The report stated that the current Development Programme is for 579 homes (Net 380 increase), and that in March 2025, the council approved a new ambitious programme resulting in £142m council investment.

The report listed the following approved development programme schemes:

• Penlea House in Bridgwater (33 homes)
• Taunton NTWP (B & Ci) in Taunton (4 homes in 25-26, 49 homes in 26-27)
• Taunton NTWP (Cii & Ciii) in Taunton (60 homes in 27-28)
• Taunton NTWP (D) in Taunton (69 homes under review in 24-25)
• Seaward Way in Minehead (33 homes in 25-26)
• Oxford Inn in Taunton (8 homes in 25-26)
• Bespoke Homes 2 (4 homes committed in 26-27)
• Badgers Close in Langport (6 homes NKD in 26-27)
• Bespoke Homes 3 & 4 (4 homes in 26-27, 4 homes in 27-28 committed)
• Brymore Way in Cannington (48 homes NKD in 27-28)
• Charlton Adam (9 homes NKD in 26-27)
• Coombe Batch in Wedmore (12 homes NKD in 27-28)
• Cricketers P2 in Nether Stowey (23 homes NKD in 27-28)
• Garage Redvelopments (13 homes in 26-27, 26 homes in 27-28 committed)
• Lovens Farm in North Newton (2 homes committed in 25-26)
• Newton Road in North Petherton (14 homes NKD in 27-28)
• North Street in Bridgwater (2 homes committed in 27-28)
• Queens Square in Highbridge (8 homes committed in 27-28)
• Sneddon Grove in Taunton (29 homes committed in 24-25)
• Step Down Project in Taunton (24 homes committed in 27-28)
• Wordsworth in Taunton (30 homes committed in 24-25)
• Oake (Retrofit) in Oake (10 homes under review in 24-25)
• Taunton NTWP (E) (Retrofit) in Taunton (10 homes under review in 24-25, 6 homes in 25-26, 11 homes in 27-28)

Work Programme

The committee was scheduled to discuss its work programme. The Scrutiny Communities Work Programme 17 September 2025 listed the following items for future meetings:

• Annual Report Lead Member for Communities, Housing Revenue Account, Culture and Equalities and Diversity - 6 November 2025
• Octagon Theatre - 6 November 2025
• Leisure operators (Everyone Active, and Freedom Leisure) – annual performance reports - 6 November 2025
• South West Heritage Trust – annual outcomes report - 6 November 2025
• Glastonbury Festival - 8 December 2025
• Homefinder Report, including Seaward Way allocations - 8 December 2025

The work programme also listed forward plan items from the 24/25 Budget:

• Quarterly updates on devolution progression and delivery of various communities services and assets to Parish and Town councils
• Quarterly updates on the progression and delivery of income generation proposals with relevant Parish and Town councils to deliver the target value to avoid cessation of the CCTV service
• Quarterly updates on the delivery of the devolution of specific assets to Yeovil Town Council regarding CMS020 Yeovil Recreation Centre, CMS022 – Octagon Theatre
• CMS 038 Westlands Entertainment Venue.

The following items were listed to be added to the work programme:

• Devolution Service Level Agreements Post April 2025.
• Devolution relevant to Scrutiny Committee Communities (verbal update– Sara Skirton/Jonathan Stevens/Sarah Dowden)
• Air Quality ?? -Sarah Dowden
• Gypsy/traveller issues
• Library Proposals following Needs Assessment