Agenda item

To submit the report of the Head of Housing.

The report of the Head of Housing Services incorporating the HRA Business Plan 2025 to 2055 was presented for the Executive’s consideration and approval.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance and Housing presented the HRA Business Plan required by Welsh Government as part of securing the Council’s Major Repairs Allowance of approximately £2.7m for 2025/26. Prepared by Housing and Finance Officers, the Business Plan serves as the primary financial tool for managing and delivering the Council’s housing stock. It demonstrates how the Council ensures its stock complies with Welsh Housing Quality Standards (WHQS), how it intends to work towards WHQS 2023 and the investment required to fund its programme for developing new social housing. Councillor Robin Williams noted that the Council’s housing stock will grow by more than 25% to exceed 5,000 properties during the period of the Plan addressing the increasing demand for social housing. Currently, more than 852 people, including 94 families in temporary accommodation, are on the waiting list which is unprecedented.

The Head of Housing Services said that the Business Plan outlines the investment needed to maintain the Council’s housing stock to meet tenants’ needs and to fulfil Welsh Government expectations for continued improvement through decarbonisation and development of new social housing. The Council will receive £1.1m in addition to the £2.7m Major Repairs Allowance for 2025/26 supporting its significant housing stock investment. The Plan includes a capital programme of approximately £13m for 2025/26 with £3m funding 500 solar panels with battery storage. A sum of £3.76m has been included in the 2025/26 budget to develop new council houses and buy back former council houses. The Head of Housing Services referred to the tension now being felt between Welsh Government’s ambitious housing goals and its rent cap restrictions that limit the revenue for housing investment. A robustness test to consider the risks separately and collectively to ensure the viability of the business plan throughout its 30 year period failed because of the rent restriction and demands on capital expenditure resulting from WHQS 2 2023. The Housing Service intends to raise concerns with Welsh Government regarding the unsustainable requirements on the HRA.

Councillor Douglas Fowlie, Chair of the Corporate Scrutiny Committee summarised the committee’s review of the HRA Business Plan at its meeting on 11 March 2025. Discussions had focused on the plan’s alignment with the Council Plan, the risks of the proposed expansion programme and its affordability and WHQS 2 2023 achievability. The committee also enquired about leasing privately owned properties from/on behalf of property owners and noted the Leasing Scheme Wales.  After reviewing the documentation and noting the assurances provided in relation to the issues raised, the committee had resolved to recommend the HRA Business Plan 2025-2055 to the Executive alongside additional actions to publicise the Leasing Scheme Wales and to engage with Welsh Government to make WHQS 2 2023 compliance more realistic.

The Chair pledged to highlight the growing imbalance between rent income and expenditure demands particularly in meeting WHQS 2 2023 with Welsh Government.

It was resolved to approve the Housing Revenue Account Business Plan 2025-2055 for submission to Welsh Government.