Issue - meetings

To consider a joint Report of the Leader of the Council and Cabinet Member for Policy, Finance and Devolution and the Cabinet Member for Communities and Housing.

The Leader of the Council and Cabinet Member for Policy, Finance & Devolution (Councillor Alex Ganotis) submitted a report (copies of which had been circulated) requesting the Council Meeting to set the level of rent and service charges in the Housing Revenue Account (HRA) and approve the HRA budget for 2019/20.

RESOLVED – (61 for) That approved be given to:-

(i)         a reduction in the average social rent of 1% for dwelling rents;

(ii)        an increase of 3.8% for rents of shared ownership properties;

(iii)       services charge increases as outlined in Section 3;

(iv)       the Housing Revenue Account Budget for 2019/20 as set out in Appendix 1.

The names of those councillors voting on this resolution were recorded as follows:-

Those councillors who voted for the resolution were:-

The Mayor (Councillor Walter Brett); The Deputy Mayor (Councillor Wendy Meikle); Councillors Malcolm Allan, Paul Ankers, Brian Bagnall, Sheila Bailey, Kenny Blair, Laura Booth, Kate Butler, Anna Charles-Jones, Angie Clark, Richard Coaton, Christine Corris, Stuart Corris, Becky Crawford, Dickie Davies, Will Dawson, Tom Dowse, Roy Driver, Annette Finnie, Dean Fitzpatrick, Colin Foster, Helen Foster-Grime, Alex Ganotis, Chris Gordon, Graham Greenhalgh, Steve Gribbon, Yvonne Guariento, Paul Hadfield, Philip Harding, Keith Holloway, Mark Hunter, Mike Hurleston, Linda Holt, Sylvia Humphreys, Julian Lewis-Booth, Syd Lloyd, Colin MacAlister, John McGahan, Tom McGee, David Meller, Chris Murphy, Adrian Nottingham, John Pantall, Amanda Peers, Paul Porgess, Iain Roberts, David Sedgwick, Lisa Smart, Andy Sorton, Charlie Stewart, John Taylor, Alanna Vine, Lisa Walker, Mark Weldon, Jude Wells, Wendy Wild, David Wilson, Elise Wilson, John Wright and Suzanne Wyatt.

To consider a joint report of the Leader of the Council and of the Cabinet Member for Communities & Housing.

The report recommends the rent and service charge levels for the Housing Revenue Account (HRA) in 2019/20 and provides a recommended HRA Budget for 2019/20.

The Cabinet is asked to recommend that the Council Meeting approves:

·         A reduction in the average social rent of 1% for dwelling rents;

·         An increase of 3.8% for rents of shared ownership properties;

·         Services charge increases as outlined in Section 3;

·         The Housing Revenue Account Budget for 2019/20 as set out in Appendix 1.

Officer contact: Michael Cullen, 0161 474 4631, michael.cullen@stockport.gov.uk

The Cabinet Member for Communities & Housing submitted a report (copies of which had been circulated) inviting the Cabinet to consider the rent levels and service charges for the Housing Revenue Account (HRA) and a recommended budget for 2019/20.

The Cabinet Member highlighted that this would be the last year of rent reductions and that a rent strategy was being developed. She further highlighted the higher than anticipated demand for right to buy properties and the impact this may have on housing supply, although ever effort was being made to provide more affordable homes.

The Leader of the Council highlighted the Council’s ambitious approach to housing investment.

RESOLVED – That the Council Meeting be recommended to approve the following in relation to the Housing Revenue Account:-

·                a reduction in the average social rent of 1% for dwelling rents;

·                an increase of 3.8% for rents of shared ownership properties;

·                service charge increases as outlined in Section 3 of the report;

·                the Housing Revenue Account Budget for 2019/20 as set out in Appendix 1 of the report.

To consider a Joint Report of the Corporate Director for Place Management and Regeneration and the Borough Treasurer.

The purpose of this report is to provide the Scrutiny Committee with the opportunity to comment on an illustrative Housing Revenue Account (HRA) Budget. The Cabinet will be meeting on 5 February to recommend to Council an HRA budget for 2019/20, including the level of rent and service charges.  The illustrative budget is based on a number of key assumptions set out in the report regarding income from rent and service charges; expenditure commitments contained within the HRA 30 year Business Plan and Asset Management Strategy and indicative spending requirements to support inflationary pressures and identified investment priorities.

The Scrutiny Committee is recommended to comment on the report and the illustrative HRA Budget for 2019/20. 

Officer contact: Michael Cullen on 0161 474 4631 or email: michael.cullen@stockport.gov.uk

The Corporate Director for Place Management & Regeneration submitted a joint report of the Corporate Director and the Borough Treasurer (copies of which had been circulated) detailing an illustrative Housing Revenue Account (HRA) Budget, including the level of rent and service charges.  The illustrative budget was based on a number of key assumptions set out in the report regarding income from rent and service charges; expenditure commitments contained within the HRA 30 year Business Plan and Asset Management Strategy and indicative spending requirements to support inflationary pressures and identified investment priorities.

The Cabinet Member for Communities and Housing (Councillor Sheila Bailey) attended the meeting to present the report and respond to councillors’ questions.

The following comments were made/ issues raised:-

·         There was an uneven distribution in the number of right-to-buy sales over the past few years.  In response it was stated that there were a number of factors that had contributed to this which included changes to the discounts available to buyers, promotion by external organisations and the collapse of Carillion which delayed work on the valuation of properties.

·         A new rent strategy would be devised following the conclusion of the four year rent reduction policy imposed by the government.

·         The increased sale of houses under the right-to-buy policy increased pressure on the availability of accommodation in the private rented sector, where rents were already roughly twice that of the social rented sector, and contributed to an escalation of these costs.

·         In response to a comment by the low attendance at Stockport Homes’ customer hub meetings, it was stated that as rents were currently in a period of annual reduction tenants were less likely to engage.

·         Work continued to develop a strategy for the introduction of sprinklers in the Council’s portfolio of high rise properties.

RESOLVED – That the report be noted.