Agenda item

To consider a report by Councillor Rhys Thomas, Lead Member for Housing and Communities (copy enclosed) seeking Cabinet approval for the Denbighshire Housing annual rent increase, the Housing Revenue Account Capital and Revenue Budgets for 2025/26 and Housing Stock Business Plan.

RESOLVED that –

(a)      the Housing Revenue Account Budget for 2025/26 (Appendix 1 to the report) and the Housing Stock Business Plan (Appendix 2 to the report) be adopted;

(b)      rents for Council dwellings be increased in accordance with the Welsh Government Policy for Social Housing Rents by 2.7% to an average weekly rent of £112.29 with effect from Monday 7 April 2025;

(c)      the additional report (Appendix 3 to the report) on the considerations taken into account when deciding on the recommendation be noted, and

(d)      Cabinet confirms that it has read, understood and taken account of the Well-being Impact Assessment (Appendix 4 to the report) as part of its consideration.

Councillor Rhys Thomas presented the report seeking Cabinet approval for the Denbighshire Housing annual rent increase, the Housing Revenue Account (HRA) Capital & Revenue Budgets for 2025/26 and Housing Stock Business Plan (HSBP).

The report included the latest forecast outturn for the HRA and proposed budget for 2025/26 which had been calculated to enable delivery of revenue services, the capital investment programme, strive to achieve quality standards and develop the new build programme. In terms of the annual rent increase, Welsh Government had set a maximum rent increase of 2.7% and it was proposed to increase weekly rents by that amount due to pressures on the HRA to invest in homes to achieve the Welsh Housing Quality Standard (WHQS) and strive to deliver the corporate plan target for new homes.  The report had been subject to scrutiny by Communities Scrutiny Committee the previous week and had been very well received.

The Head of Housing and Communities introduced officers present.  She gave an overview of the report, providing assurances regarding the affordability of the rent increase for tenants based on the rent matrices and intention to spend any increase on meeting the WHQS with a significant programme of work required in that regard together with the ambition to create more social housing.  Reference was also made to the support provided to tenants in terms of any financial difficulties through direct support from officers and also commissioned support from organisations such as Working Denbighshire and Citizens Advice.  Finally, reference was made to the HSBP and HRA with further detailed work planned given the Council’s ambition for its housing stock with the creation of new housing not currently affordable based on current projections with a report back thereon to Cabinet in the new year.

Main areas of debate focused on the following –

·       Cabinet had been pleased to hear the feedback following scrutiny of the report by Communities Scrutiny Committee which gave further confidence in the recommendations in addition to the thorough consideration of all factors detailed in the report and paid tribute to the work of the Housing Team to benefit tenants

·       particular mention was also made to successful council housing development projects, including Llys Elizabeth, Rhyl and Llys Llên, Prestatyn and close partnership working with others including Clwyd Alyn’s housing development on Edward Henry Street, Rhyl, all examples of excellent affordable quality housing

·       members welcomed the commitment to no evictions due to financial hardship where there was engagement with the council noting that the vast majority of tenants were willing to seek help and advice; the close working with the Homeless Prevention Team was also noted

·       there was a focus on the affordable warmth agenda with approximately £9m per annum spent on capital works with circa 13000 routine repairs carried out; the revised standard required raising EPC levels of all homes up to C75 and whilst some grant funding was provided for that purpose, delivering that standard was expensive and largely unaffordable at present, by 2027 a plan was required to demonstrate how the revised standard would be achieved by 2030

·       there was a fine balance between ensuring rents were affordable for tenants and securing investment in the housing stock to benefit those tenants and the success of the approach taken had been evidenced with Denbighshire having one of the highest tenant satisfaction rates in Wales in terms of service and value for money.

RESOLVED that –

(a)      the Housing Revenue Account Budget for 2025/26 (Appendix 1 to the report) and the Housing Stock Business Plan (Appendix 2 to the report) be adopted;

(b)      rents for Council dwellings be increased in accordance with the Welsh Government Policy for Social Housing Rents by 2.7% to an average weekly rent of £112.29 with effect from Monday 7 April 2025;

(c)      the additional report (Appendix 3 to the report) on the considerations taken into account when deciding on the recommendation be noted, and

(d)      Cabinet confirms that it has read, understood and taken account of the Well-being Impact Assessment (Appendix 4 to the report) as part of its consideration.