Agenda item

HOUSING REVENUE ACCOUNT AND HOUSING RENT SETTING 2024/25

Minutes:

[NOTE:  Councillors M. Donoghue, A. Evans, H.A.L. Evans, J.P. Hart, P.M. Hughes, J.D. James, D. Price, S.L. Rees, E. Skinner, D. Thomas and G.B. Thomas having declared an interest in this item, left the meeting prior to the consideration and determination thereof.]

 

Council was informed that the Cabinet, at its meeting held on the 15th January 2024 [minute 9 thereof refers], had reviewed the Housing Revenue Account and Housing Rent Setting proposals for 2024/25 prior to the consideration of Council. The report, prepared by the Director of Corporate Services in conjunction with officers from the Communities Department, brought together the latest proposals for the Revenue and Capital Budgets for the Housing Revenue Account 2024/25 to 2026/27 and detailed proposed increases to housing rents for 2024/25.

 

Reference was made to Appendix D of the report which set out the views of the Communities, Homes and Regeneration Scrutiny Committee following consideration and endorsement of the proposals at its meeting held on the 13th December 2023, as part of the budget consultation process.

 

In presenting the report the Cabinet Member for Resources expressed the challenges faced by the Authority in achieving the fine balance of setting the rent within current Government policy at an affordable level for tenants whilst also delivering on its housing aspirations.  Furthermore, it was emphasised that adoption of the Cabinet’s recommendations by Council would represent an average increase of 6.5% to housing rent, which was just below the Welsh Government cap of 6.7%.  The Cabinet Member for Resources clarified that the increase would equate to an average housing rent of £105.90 per week for its tenants and represented one of the lowest rent levels out of the 11 stock-retaining Welsh Authorities, and significantly below the private sector housing rents. 

 

In closing, the Cabinet Member for Resources reported that the proposals sought to balance the pressures on households during a cost of living crisis with the need to continue with the Authority’s Housing Development Programme, while ensuring that properties continued to be maintained to the Carmarthenshire Homes Standard Plus(CHS+) standard.  

 

RESOLVED that the following recommendations of the Cabinet be adopted:

 

7.1.1

“to increase the average housing rent by 6.5% (£6.47) per dwelling per week within the parameters of the WG Social Housing Rents Policy (inclusive of progression for tenants below target rents)

            - properties at target rents will increase by 6.39% and

- properties where rent is below target rent will increase by 6.39% plus a maximum progression of £1.00

- those rents above target are frozen until such time that they meet the target

which will produce a sustainable Business Plan, maintain the CHS+ and deliver the Authority’s Housing Regeneration and Development Delivery Plan;

 

7.1.2

to continue with a maximum progression of £1 for rents below the proposed rent for each stock type;

 

7.1.3

to increase garage rents by 6.5% from £9.00 to £9.60 and garage bases from £2.08 to £2.22;

 

7.1.4

to apply the amended Service Charge Policy to ensure tenants who receive the benefit from specific services pay for those services (Appendix C of the report);

 

7.1.5

to increase charges for using our sewerage treatment works in line with the rent increase;

 

7.1.6

to approve the Housing Revenue Account Budget for 2024/27 (2025/26 & 2026/27 being soft budgets) as set out in Appendix A of the report;

 

7.1.7

to approve the proposed Capital Programme and applicable funding for 2024/25 and the indicative spends for 2025/26 to 2026/27, as set out in Appendix B of the report.”

 

Supporting documents: