Decision details

The Cabinet was asked to consider: -

·  The Housing Revenue Account (HRA) budget estimates for 2023/24,

·  The Management Fee payable to Solihull Community Housing (SCH); and

·   The proposed changes in dwelling and garage rents and leaseholder management fees for 2023/24.

Members were advised that The Autumn Statement announced a reduction to the maximum rent increase temporarily to 7% following a Department of Levelling Up, Housing and Communities (DLUHC) consultation undertaken in 2022. The HRA budget presented in the report was based on a 5% rent increase and an indication of the cost implications for a 7% rent increase were shown. Cabinet was asked to consider and approve a rent increase for 2023/24.

The HRA and SCH budget plans for the next 3 years had been presented to Budget Strategy Group on 21 November 2022 and 16 January 2023 and to the Members Budget Seminar on 1 December 2022. The SCH Board were informed of the proposals on 8 November 2022.

The report included Appendices detailing the 10-year HRA Business Plan at Appendix A, the SCH 3-year planned savings at Appendix B, a statement of HRA and SCH reserves at Appendix C and details of Fees and Charges at Appendix D.

Cabinet was requested to approve the charges for HRA wholly owned and shared ownership properties, garages, Leaseholder Management Fees and note those within SCH’s ownership which were approved by the SCH Board on 8 November 2022.

It was proposed that the SCH 5-year rolling Management Agreement was approved at a cost of £22.146million, an increase of £2.414million or 12.23% when compared to 2022/23.

On receiving the report Members considered the impact of a 5% or 7% increase would have on residents, as well as the impact this would have on reserves, future funding and investment as well as fairness in the current climate. Officers advised that if 5% was agreed it would not have any negative effect on the safety or servicing of properties. Officers also provided clarification over the issues with the pension fund.

RESOLVED:

(i)  That rent increase for all tenures be approved at 5%;

(ii)  That increases in garage rents as recommended by the SCH Board and set out in Appendix D, from 1 April 2023 be approved;

(iii)  That the increase in Leaseholder Management Fees from £141 to £145 per annum be approved;

(iv)  That the Housing Revenue Account budget for 2023/24 including the SCH Management Fee as set out in the HRA Business Plan Financial Forecast at Appendix A be approved;

(v)  That the SCH Management Agreement for 2023/24 – 2027/28 be approved;

(vi)  That the removal of a £1.000million contribution to the HRA Future Capital Expenditure Reserve in 2022/23 be approved; and

(vii)  That the fees and charges approved by the SCH Board on 8 November 2022 set out in Appendix D be noted.