Agenda item

(Cabinet Member with Special Responsibility Councillor Caroline Jackson)

Joint report of Chief Officer Housing & Property and Chief Officer Resources (report published on 14.1.25)

Cabinet Member with Special Responsibility Councillor Caroline Jackson)

Cabinet received a joint report from the Chief Officer for Housing & Property and the Chief Officer Resources which sought Cabinet decisions on Council Housing rent setting proposals and the consideration of HRA revenue and capital budget proposals.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

The options with regards to rent setting are set out under section 4, the maximum permitted increase being CPI+1%. By applying this increase, it allows for a budget that can deliver on the Council’s ambitions on improving housing standards and addressing the climate change emergency, whilst adhering to the Rent Standard and wider legislative requirements.

In relation to garage rents, it is recommended that following recent rent freezes an increase in line with dwelling rent increases is appropriate and will support maintenance requirements without adversely impacting occupancy levels.

The provision, reserves and balances position (and their use); Revenue budgets; Capital Programme; and other wider budget considerations referred to in this report will be presented fully to Cabinet on 11th February 2025.

The officer preferred option is Option 1 : Set housing and garage rent levels as set out in this report in advance of consideration of wider HRA budget at February 11th 2025 Cabinet.

The report highlights challenges faced within the current economic climate, particularly in the context of the increased regulatory and legislative requirements being placed on the social housing sector.

The longer-term financial forecasts contain numerous estimates and assumptions, and the service remains attuned to the risks contained within Appendix F, and in particular the impacts of further legislative and regulatory change which could affect business planning within the HRA.

Lancaster City Council’s Housing Service remains ambitious, while continuing to operate a sensible but forward-looking approach, seeking to meet Regulatory requirements and deliver safe and decent homes.

In response to a question regarding the installation of gas boilers the Leader advised the meeting that she would request a report to a future Cabinet meeting on how the Housing Service was progressing towards net zero.

Councillor Caroline Jackson proposed, seconded by Councillor Hamilton-Cox:-

“That the recommendations, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

(1)           That council housing rents be set in accordance with statutory requirements as follows (subject to tenant consultation and ratification at February 11th 2025 Cabinet):

· for existing tenancies, rents will increase by 2.7% from 7th April 2025

· for new tenancies within 2025/26, rents will be set at ‘formula rent’1

(2)        That garage rents be increased at CPI +1% in line with dwelling rents

(3)        That subject to the above, the resulting Housing Revenue Account budget for 2025/26 onwards, as set out at Appendix A to the report, together with the resulting Capital Programme as set out at Appendix C to the report, be considered by Cabinet, ahead of final presentation on 11th February 2025 and pending tenant consultation.

Officer responsible for effecting the decision:

Chief Officer for Housing & Property

Reasons for making the decision:

The budget represents, in financial terms, what the Council is seeking to achieve through its approved Housing Strategy in relation to council housing.

The proposals set out in the report will have positive impacts residents within Council Housing dwellings specifically climate change, wellbeing / social value, health and safety and community safety.