Agenda item

5:05 – 5:45pm

·        Presentation to be made at the meeting.

The Housing Manager attended to provide a progress report on Housing Policy and the development of the Housing Revenue Account (HRA) Business Plan.

The Housing Manager advised that all the policies that had been announced in the 2015 Summer Budget including the reduction in social housing rents by 1% for 4 years, the freeze on working age benefits including the Local Housing Allowance, and the requirement on local authority housing providers to dispose of higher value assets, had now been enacted. It was noted however that the “Pay to Stay” policy where households with an income over £31,000 would have to pay market, or near market rent, with difference to the social rent being returned to Treasury, had now been made discretionary.

The Housing Manager reiterated that despite the self-financing arrangement that had begun in 2012 these changes would have a significant impact on the delivery of housing services in Chesterfield and the financial viability of the HRA Business Plan. These changes had created a situation where there had had to be a fundamental look at  how the Business Plan would be managed in the future to ensure that it remained both sustainable and financially viable.  In order to facilitate the review of the HRA Business Plan a steering group had been established in order to look at, and find ways, to fill revenue gaps in the HRA and to put forward a revised business plan. The steering group was comprised of Officers and Members including Councillor Perkins as the Scrutiny representative, with Councillor T Murphy the Cabinet Member for Housing, Chairing the meetings. The steering group had also been working in conjunction with the tenants sub-group.

The Housing Manager outlined the full list of recommendations that the steering group would be recommending to Cabinet for inclusion in the HRA Business Plan. These included:

Rents and Recovery

·        Moving to a 52 week rent year and removing ‘rent free’ weeks to match universal credit payments and also to encourage a regular payment culture.

·        Encouraging tenants in receipt of universal credit to arrange direct payment to landlord to prevent them from falling into arrears.

Voids and Lettings

·        Decorating and carpeting difficult to let properties, instead of issuing decorating vouchers to make the properties more appealing to potential tenants.

·        Marketing properties via Rightmove/Zoopla/Social Media/ Voluntary Sector in order to compete with the private rented sector and to encourage applications from working tenants who may have not previously considered council housing.

·        Leasing blocks of flats to other local authorities with full maintenance responsibilities.

Repairs and Maintenance

·        Reviewing tenant repairing obligations e.g. Tenants taking more responsibility for own repairs and damage.

·        Charging tenants where they fail to keep an appointment for a repair.

The proposals had been created after a high level of tenant involvement and consultation and it was noted that many of the more difficult and challenging proposals had been suggested by tenants. The Housing Manager emphasised that all the financial assumptions used in drafting the new HRA Business Plan, as well as all the mitigating measures proposed needed to be realised in order for the HRA Business Plan to be viable into the future.

Members asked several questions about the proposals and areas for savings including how much was being spent on “responsive repairs” by the council. The Housing Manager advised that the current cost of responsive repairs was around £1000 for each property each year. This figure was well above the amount spent on responsive repairs by other authorities and as there needed to be £1.5 million saved from the repairs budget over the next three years responsive repairs was a key area for savings to be realised. Members also asked about the introduction of fixed term tenancies. The Housing Manager advised that fixed term tenancies had previously been discretionary but were now mandatory, however the legislation stated that the length of a fixed term was “up to 10 years” so there was some flexibility in how fixed term tenancies were implemented.

The Housing Manager also provided details to the committee regarding the recent meeting between the Leader, the Cabinet Member for Housing and the Housing Manager with the Housing Minister in Westminster which had been arranged by Chesterfield MP, Toby Perkins. Members thanked the Housing Manager for attending to provide the progress report and for answering their questions.

RESOLVED –

1.   That the progress report be noted.

2.   That Chesterfield MP, Toby Perkins be thanked for arranging the meeting of the Leader, the Cabinet Member for Housing and the Housing Manager with the Housing Minister.

3.   That the recommendations to Cabinet made by the Steering Group for inclusion in the Housing Revenue Account Business Plan regarding Rents and Rent Recovery, Voids and Lettings and Repairs and Maintenance, be supported.

4.   That any further comments or questions from members regarding the recommendation made by the steering group be directed to Councillor Perkins as the Scrutiny Committee’s representative on the steering group.

5.   That further progress reports on Housing Policy and the Housing Revenue Account Business Plan be brought to the Enterprise and Wellbeing Scrutiny Committee as required.