Decision details

The Chair welcomed Glenn Smith, Director of Housing Finance Associates Ltd, to the meeting. Upon the invitation of the Chair and after an introduction from the Group Head of Residential Services, Mr Smith presented the report which provided an annual update on the baseline position for the Housing Revenue Account Business Plan (HRABP) projections.  The HRABP forecasted income, expenditure, investment and borrowing in respect of council housing stock over a 30-year period. Regular review of the HRABP was essential to ensure short, medium, and long-term viability of the plan.  The update had been produced by the Council’s retained expert consultant, Housing Finance Associates Ltd, and was based on the Council’s best available information and realistic assumptions for the coming years.

Members then took part in a full debate on the item where a number of points were raised including:

·       the capital programme and new house building, and the assumptions in the graphs

·       interest cover and its movement over the life of the plan in relation to costs and rents

·       the ‘recycling of stock’ and what this meant in terms for selling off housing stock when costs outweighed revenue and properties stopped contributing to the Housing Revenue Account budget

The Group Head of Residential Services and Consultant provided Members with responses to all points raised during the debate. On behalf of the Committee, the Vice-Chair thanked Mr Smith and Housing Finance Associates Ltd for their work in preparing the report.

The recommendation was then proposed and seconded.

The Committee

RECOMMEND TO FULL COUNCIL

That the annual update of the Housing Revenue Account Business Plan 2021/22 be noted.