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 for 2024 to 2054 was presented for the Committee’s consideration. The HRA Business Plan sets out how resources will be spent to maintain, improve, and develop the Council’s housing stock.

The report was presented by Councillor Nicola Roberts, Portfolio Member for Planning, Public Protection and Climate Change on behalf of Councillor Gary Prichard, Portfolio Member for Children, Youth and Housing Services. It was noted that the Council acts in accordance with the Housing Wales Act (2014) which places statutory obligations on Welsh Registered Social Landlords for the delivery, financial planning and management of the Council’s housing stock and is committed to meeting the Wales Quality Housing Standards (WQHS) 2023. The Council continues to provide quality housing for the residents of Anglesey and owns 3,981 social housing properties. It proactively promotes input by it tenants in improving the service and provision.

The following points were discussed by the Committee –

·      The design approach to the Council’s housing stock and the extent to which character and visual quality are factors in developing new Council housing.

·      The affordability of the HRA Business Plan in the context of reducing resources.

·      Whether the Council’s collaboration with its current Housing Association partners can be extended to include other housing associations in order to accelerate the rate of delivery of new social housing in accordance with the expectations of the 5-year plan.

·      The rationale for the 30-year lifespan of the Business Plan.

·      The achievability of the priority of working towards meeting the Welsh Housing Quality Standards 2023.

·      The percentage of the Council’s housing stock that is suitable for the 21^st century.

The Head of Housing Services and the Director of Function (Resources)/Section 151 Officer further advised as follows –

·      That the Council has a programme for increasing its social housing stock and would like to think that it supports good design and that the houses it helps develop are visually attractive with the new estate in Llanfachraeth being an example of a visually appealing development in keeping with its context.

·      That the aim of the HRA Business Plan is to plan ahead to ensure that a financially viable plan is in place for the Council’s housing stock. The Council needs to ensure that the annual rental income from its housing stock is sufficient to deliver the priorities of the Business Plan including the maintenance of the current stock to WHQS standards and where capacity allows, investment in new council housing. The Section 151 Officer explained the process for testing the financial viability of the Business Plan and the factors considered, including the modelling of different options based on a range of assumptions around inflation, rent increase, interest rate and costs. While the HRA reserve has been used to develop new housing, it is envisaged that as the reserve reduces the HRA will have to borrow at a point in future and if costs remain high the rate of development may have to be tailored accordingly.

·      That the Social Housing Grant provided by Welsh Government to fund social housing schemes is allocated on the basis of formula and would remain the same regardless of the number of Housing association partners the Council might choose to work with in delivering social housing schemes. Entering into partnership with more housing associations would mean the allocation is spread more thinly.

·      That the 30-year lifespan of the Business Plan has likely originated in the borrowing arrangements between banks and housing associations to ensure that debts are paid over a 30-year planning timescale which have then become part of Welsh Government’s processes after those councils which retained their housing stock bought out of the HRA Subsidy scheme. The HRA Business Plan is reviewed annually and is also condensed into a five-year plan which provides a better understanding of the Council’s plans in the medium term

·      That the Council is committed to achieving the WHQS 2023 and was the second council in Wales to achieve the WHQS 2012. The Housing Service has undertaken a full stock condition survey in 2022/23 to establish a baseline in preparation for the new standards and is satisfied that all properties wherever practically possible meet the original WHQS apart from those that are refused or which meet the acceptable fail criteria. The Service is also working on developing targeted energy pathways for homes to meet energy efficiency requirements. The Section 151 Officer advised that there may be a small number of the Council’s housing stock which cannot be made to satisfy the new 2023 standards and any subsequent standards especially in relation to decarbonisation. In that case the Council will have to review its housing stock to establish whether it is possible or cost-efficient to invest in every single property in an attempt to bring them to the WHQS.

Having scrutinised the HRA Business Plan 2024 to 2054 the Corporate Scrutiny Committee resolved to recommend the Plan for the Executive’s approval.