Agenda item

The HRA Asset Management Strategy sets a long-term approach to the maintenance and development of the Council’s housing assets in order to best meet its housing objectives.

(i)         that approval be given to the HRA Asset Management Strategy which is appended to the report and authorise its implementation from 1 April 2014;

(ii)        that agreement be given to an indicative five-year capital budget of £86.3m for stock investment, with the final budget being reported annually to the Executive for approval;

(iii)       that approval be given to proceed with an initial programme for the development of between 75 and 100 new affordable homes within the HRA estate for let at Affordable Rents with local consultation and scheme development to be managed by Brent Housing Partnership and with the final schemes to be subject to approval by the Executive;

(iv)       that capital receipts that are realised from the disposal of HRA stock be ring-fenced for the development and acquisition of affordable housing through the HRA subject to annual approval in the capital programme, and that replacement receipts that have arisen from Right-to-Buy sales since April 2012 and that arise in the future, are additionally ring-fenced for the development or acquisition of affordable housing through the HRA;

(v)        that further examination is made of approaches to maximise the provision of new affordable housing with the intention being to develop one thousand affordable homes, including replacement homes, from 2014-2022, with this including examination of the use of corporate land-holdings, prudential borrowing, the contribution of BHP and relevant partnership arrangements to achieve this, and to report further to the Executive in respect of specific projects in relation to this;

(vi)       that approval be given to the rent policy set out in the Asset Management Strategy for the period 2014-19 with actual rent increases being subject to annual approval by the Executive;

(vii)      that under the HRA prudential borrowing regime, additional HRA borrowing of up to £20.6m be approved, to be used by March 2016.

(viii)     that it be noted that the responses to the consultation regarding the draft HRA Asset Management Strategy which are set out in Appendix 2 to this report;

(ix)       that the content of the Equality Impact Assessment which is set out in Appendix 3 to the report be noted.

The report from the Strategic Director of Regeneration and Growth set out a long-term approach to the maintenance and development of the council's housing assets in order to best meet its housing objectives. A draft of the strategy was agreed in July for consultation to proceed on the approach proposed. Brent tenants and leaseholders and the wider public were consulted on the draft strategy over an eight week period from early August to early October and it was felt that there was a high-level of endorsement for the approach proposed in the draft strategy and responses received were taken into account in finalising the strategy.

The Chair (Councillor Butt, Leader of the Council) responded to representations heard earlier in the meeting and drew attention to the council’s difficult financial position and housing regeneration activity taking place around the borough to improve people’s lives for example in South Kilburn, Alperton and Barham Park. Councillor McLennan (Lead Member, Housing) in introducing the report, welcomed the intention to build affordable new homes and the planned medium term approach to meeting objectives. Regarding the consultation, Councillor McLennan reported that this had been widespread and there was a high level of endorsement for most aspects of the strategy. The rent policy proposed ensured existing tenants were the subject of only modest rent rises, that the new homes built would be affordable, and that there would be sufficient income generated to both improve existing homes and build new council housing.

Andrew Donald (Strategic Director, Regeneration and Growth) clarified the position on rents which would not actually be set for 2014/15 until February 2014. Social rent levels for existing tenants would be maintained in accordance with the government’s existing rent convergence policy. Any new homes that made use of government grant will be required to charge an ‘affordable rent’, at between 60-80% of the average market rents. 

Councillor Pavey (Lead Member, Children and Families) stated that advance notice of the report coming to the Executive had been given both in the consultation and on the council’s forward plan and regretted that concerns expressed earlier in the meeting had not been raised earlier for proper discussion. He acknowledged that the strategy was having to respond to exceptionally challenging circumstances and that Brent was facing some very difficult housing choices driven by ongoing increases in private sector rents and increasing numbers of homeless applications.

RESOLVED:

(i)         that approval be given to the HRA Asset Management Strategy which was appended to the report from the Strategic Director of Regeneration and Growth and its implementation from 1 April 2014 be authorised;

(ii)        that agreement be given to an indicative five-year capital budget of £86.3m for stock investment, with the final budget being reported annually to the Executive for approval;

(iii)       that approval be given to proceed with an initial programme for the development of between 75 and 100 new affordable homes within the HRA estate for let at Affordable Rents with local consultation and scheme development to be managed by Brent Housing Partnership and with the final schemes to be subject to approval by the Executive;

(iv)       that capital receipts realised from the disposal of HRA stock be ring-fenced for the development and acquisition of affordable housing through the HRA subject to annual approval in the capital programme, and that replacement receipts that have arisen from Right-to-Buy sales since April 2012 and that arise in the future, be additionally ring-fenced for the development or acquisition of affordable housing through the HRA;

(v)        that further examination be made of approaches to maximise the provision of new affordable housing with the intention being to develop one thousand affordable homes, including replacement homes, from 2014-2022, with this including examination of the use of corporate land-holdings, prudential borrowing, the contribution of BHP and relevant partnership arrangements to achieve this, and to report further to the Executive in respect of specific projects in relation to this;

(vi)       that approval be given to the rent policy set out in the Asset Management Strategy for the period 2014-19 with actual rent increases being subject to annual approval by the Executive;

(vii)      that under the HRA prudential borrowing regime, additional HRA borrowing of up to £20.6m be approved, to be used by March 2016;

(viii)     that the responses to the consultation regarding the draft HRA Asset Management Strategy set out in Appendix 2 to the report be noted;

(ix)       that the content of the Equality Impact Assessment set out in Appendix 3 to the report be noted.