Agenda item

A slide presentation on the Housing Revenue Budget 2025/26 and its Business Plan will be delivered at the meeting.

Daniel Rochford (Head of Finance – Housing) presented the Housing Revenue Account (HRA) Budget 2025/26, including the strategic operating environment, the HRA budget strategy, HRA 10-Year Business Plan, proposed HRA budget and its key outcomes, key risks, HRA general reserve, Housing Capital Programme 2025/26 - 2028/29 and the key metrics (value of housing and external debt outstanding). He said that the HRA budget 2025/26 would be presented to the Cabinet on 10 February 2025.

NOTE: The presentation slides are attached in Appendix C

On the Chair’s enquiry about the details of the efficiency savings of £5.3m, Daniel Rochford noted the contingency in the HRA budget had increased significantly to protect the HRA from various pressures experienced in recent years.  With the current HRA balance becoming more stable, the level of contingency could now be reduced by £2m.  In addition, a number of savings initiatives had been implemented by the Housing Service. A good example was that, on the conclusion of the Integrated Housing Management Systems Programme, it was no longer necessary to hold extra budgets and incur expenditure for the development and implementation of the project resulting in some savings as the service returned to business as usual.

Noting the robust target for reducing void rent loss to 1.6%, Councillor Asif Siddique sought elaboration in achieving this.  Richard Shwe (Director of Housing) noted that the number of voids had dropped from some 600+ two years ago to around a hundred standard voids plus some major voids currently.  He highlighted the joined-up thinking had helped shorten the duration of void recovery from several months or even a couple of years to about 20/30 days by streamlining the process with responsible officers’ undertakings done digitally.  For properties not meeting the required standards, former tenants would be held accountable and asked to improve. The Council also needed to incur some expenses in this regard.

The Chair asked why the repair spending was set to be reduced in HRA. Richard Shwe highlighted the good position in repairs the financial position of which had been improved. Moreover, the asset management plan over the next 10 years was also looking good. 

In reply to Councillor Adronie Alford’s concern about the level of compensation of disrepairs payable to residents and their ambulance chasers, Richard Shwe noted that a lot had been done to improve the policies and procedures in respect of repairs. The Housing Service was now in a better position to assure what needed to happen for cases of disrepairs.  It was giving advice proactively to the residents concerned against ambulance chasing by undertaking to recover the properties in good conditions.  He agreed to provide the level of compensation of disrepairs in the HRA budget.

ACTION: Daniel Rochford

Councillor Frances Umeh (Cabinet Member for Housing and Homelessness) expressed grave concern about ambulance chasing as the relevant firms might have misled the residents, delayed the work resulting in rising costs and brought adverse impacts on the families ultimately.   Under the new policies and procedures, the Council was committed to maintaining homes to a decent standard and resolving with the residents any issues with their properties without having to pay a significant sum to the third parties.  The Housing Service would be addressing some of the claims over the course of the next financial year.

Question from the floor

Mr Martin Thirlaway asked –

‘The HRA Capital Programme shows several projects that include ‘market sale' for some dwellings. This was intended to be leasehold. It now appears that commonhold will be enacted at some time before the projects are completed. Will the Council be prepared to make those projects commonhold?’

Richard Shwe replied on behalf of the Housing Service –

‘We understand that the Government will publish a draft bill later this year to reform the leasehold and commonhold regulations which may include abolishing the leasehold tenure for all new flats.  We look forward to understanding and implementing any new regulations that will better serve our communities and many of our developments are on Council estates, include mixed tenure to meet different housing needs.  We will explore new ownership models that help us deliver safe, secure and affordable homes for all our residents in H&F.’

Given some units in the White City Estate were imminently ready for market sale, Mr Thirlaway was concerned whether the new legislation banning new leasehold flats would also be ready. Richard Shwe said as a local government officer, he shared the same public knowledge about the legislation timetable.  Nevertheless, he would review with legal officers the impacts of any new legislation on residents and provide the support they needed.  

Councillor Umeh relayed members’ feedback on the HRA Budget 2025/26 expressed at the Sheltered Housing Forum and Housing Representatives Forum and their gratitude for the work of officers done to manage the very challenging circumstances under the HRA. The Housing Representatives had asked to pass their appreciation particularly relating to the service charges and rent to this PAC and the Cabinet. 

RESOLVED

That the Committee noted the presentation.