Issue - meetings

Report of the Deputy Chief Executive (Community Direction) advising of options for managing the impact of the 1% rent reduction and previous rent increase decisions on the Housing Revenue Account Business Plan and HRA Investment Strategy.

Members were advised of the options for managing the impact of the 1% rent reduction and previous rent increase decisions on the Housing Revenue Account (HRA) Business Plan and HRA Investment Strategy which had been in place since July 2013.

In addition to the rent reduction, the impact of selling high value voids was a concern for members. It was noted that there had not yet been any indication of what constituted ‘high value’ or how this would work in practice. The suggestion to move to short-term tenancies also caused concern in that, amongst other concerns, there would be less incentive for tenants to maintain and improve their properties.

During discussion, the following points were raised:

·         The impact of the reduced rental income on the decency of housing stock

·         Possible options for working with housing associations and the new local housing company

·         The authority had opted to keep housing stock when other authorities were selling theirs, yet now the Government seemed to be forcing authorities to sell

It was noted that key members were trying to arrange a meeting with the MP to make representations about the impact of these changes. It was acknowledged that more work would be undertaken in relation to the sale of high value voids once more detail was known.

In relation to the options provided in the report, members indicated a clear preference for option 3.

RESOLVED – option 3 – re-borrowing (continue with current schemes only) be supported as the preferred option.