Agenda item

To present the report of the Head of Housing Services.

The report of the Head of Housing Services incorporating the Housing Revenue Account (HRA) Business Plan 2023-2053 was presented for the Committee’s consideration.

Councillor Gary Pritchard, Portfolio Member for Children, Youth and Housing Services presented the Business Plan as reflecting the Council’s vision that “everyone has the right to call somewhere home.” The HRA finances all of the Council’s operations in its role as registered social landlord and provides a financially viable plan for the Council’s housing stock. An important element of the HRA is the commitment to expanding the Council’s housing stock to meet differing housing needs across the Island which as the Portfolio Holder he was proud to endorse.

The Head of Housing Services advised that the Council is required to submit its application for Welsh Government’s Major Repairs Allowance (MRA) along with the 30-year HRA Business Plan to Welsh Government by 31 March in order to secure the annual MRA which for 2023/24 is £2.688m. The Plan forms the primary tool for financial planning of the delivery and management of the Council’s housing stock and demonstrates how the Council brings all its stock to Welsh Housing Quality Standards (WHQS); how it intends to maintain and work towards the new WQHS to be shortly agreed by Welsh Government and the investment needed to finance the Council’s new council house development programme. The Council is committed to continuing with its energy efficiency and decarbonisation work with £1m earmarked to target a further 250 multiple Solar OV system installations. In addition, £8.749m has been budgeted for in 2023/24 for the development programme of new council housing and acquisition of former council housing on the Island. The Business Plan assumes a development programme of 45 units in 2023/24 and throughout the period of the Plan. The Business Plan has been stress tested to take account of risks both individually and collectively and it remains viable over the 30-year period of the plan.

The Committee considered the contents of the HRA Business Plan and the following issues were discussed –

·      The ways in which the proposed strategy enables the Council to realise the strategic priorities in the Council Plan for 2023-28. The Committee was advised that the vision at the heart of the HRA Business Plan is ensuring that everyone has the right to call somewhere home which accords with one of the strategic objectives in the Council Plan. Essential to realising this vision is ensuring the development of the right homes in the right place and in the right numbers which it is believed the Strategy enables. In response to questions about the reacquisition of former council houses that are now being used as holiday homes, the Head of Housing Services confirmed that the Council seeks to reacquire at least 15 former council houses per annum and will buy back in excess of that number if opportunity and resources allow. However, whilst the Council cannot buy private properties for council housing purposes as they would not meet WHQS standards, it does have schemes in place to help local people purchase open market properties.

·       The affordability of the proposed council housing expansion programme in the current economic climate. The Committee was advised that the HRA Business Plan is supported by a 30-year financial model which will be submitted the Welsh Government and is also accompanied by a sensitivity analysis which demonstrates the robustness of the plan. These are based on key assumptions and parameters set by Welsh Government and predict the resources available and required to maintain WHQS, the capacity for the new build programme and aims to provide assurance on the long-term suitability and financial viability of the HRA. Should inflation remain high or increase thereby affecting costs then the level of expansion may have to be reconsidered. While each individual housing development is assessed for viability in accordance with an agreed financial model there is Executive agreement that should there be an existing need for a development then it can proceed on that basis rather than on the basis of cost. Having met the WHQS back in 2012 the Council has the capability to undertake housing development which will be funded in the first instance through the balance of the HRA and then through borrowing the cost of which will be met by HRA generated income. However, other factors to consider are the availability of land and contractors.

·      The extent to which the HRA Business Plan seek to address the supply of accommodation for vulnerable adults and families. The Committee was advised that it is important that the needs of people on the Social Housing Register are met. There are currently 908 applicants on the Register with the majority requiring 1- and 2-bedroom general need properties and older person’s properties. It is important also that the provision of affordable housing includes many different kinds of tenures and accommodation to meet the varying needs of different groups.

·      Capacity issues both within the Housing Service and among private sector developers and contractors working alongside the Council to build new housing and whether risks have been identified and mitigation measures put in place. The Committee was advised that internal capacity/workforce can be developed, and the procurement framework can be looked at to enable/facilitate private sector developers to collaborate with the Council on building new housing. While capacity is recognised as a risk, it is considered that the HRA Business Plan in setting as an objective the delivery of 45 units per annum achieves an appropriate balance between ambition and realism.

·      The supply of social housing required to meet the demand on the housing register and the availability of assistance for first time deposits and/or contribution to rent deposit. The Committee was advised that the number of people presenting to the Housing Service as homeless is unprecedented including 85 households who are in emergency or temporary accommodation and the waiting list for social housing is significant. Although over 350 houses are on average let each year by the Housing Service and Housing Associations, the waiting list continues to grow making it difficult to quantify the supply required. However, the figures demonstrate an increasing need for affordable housing be that through standard rent, intermediate rent or help to buy. The Head of Housing Services confirmed that there are schemes to provide help with deposits subject to need and individual circumstances and in this context, he clarified the difference between standard rent and intermediate rent housing.

·      The need to publicise Housing Service’s support and assistance schemes as well as the Service’s poverty related activities. The Committee was advised that such publicity could be incorporated in the Annual Report on the delivery of the Business Plan which summarises what has been achieved in the year. Additionally, the Service recognises that the support it provides to help people acquire their own homes needs to be marketed more widely and will be addressed as part of the Service’s Delivery Plan and work programme for the first quarter of 2023/24.

Having scrutinised the HRA Business Plan and noted the additional information and assurances provided at the meeting it was resolved to recommend the Housing Revenue Account Business Plan for 2023-205 to the Executive.