Agenda item

Report of the Team Leader (HRA & Capital Projects).

Consideration was given to the report of the Team Leader (HRA & Capital Projects).

The Team Leader (HRA & Capital Projects) introduced the report and advised that the charges outlined in the report would be voted on at the all DMC rent setting meeting scheduled to take place in January 2024.

It was reported that the HRA reserve stood at £23 million. Furthermore, under the triple lock, pensions would go up by the 8.5% and benefits would go up by 6.7%, in line with the Consumer Prices Index.

DMC Members made the following comments:

• Rent payments go into the HRA, but there did not seem to be money available to fund important works, such as mould and damp repairs, and a large amount of money was being spent on internal borrowing.
• Essential or emergency maintenance work was not enough for some properties, as there were residents living in flats that were in disrepair and in desperate need of updates.
• Damp and mould was inevitable with the levels of overcrowding some residents experienced. It was appalling that government was not funding these essential repairs things, especially in the wake of Grenfell and child’s death cause by damp and mould in Rochdale.
• 30% of council tenants did not receive any benefits and the proposed rent increases could have a huge impact on those residents. The increase would have to be paid for out of their own pocket and many residents who worked would not receive an increase in their wages in line with inflation. A tapered system should be given consideration to lessen the burden on those residents.
• Those in receipt of a pension will also be worse off after the increases to rent and council tax.
• The impact of the Building Safety Act was expected to be far reaching and expensive. DMC Members would be interested to see how departments were adapting to these changes and residents should be informed on the Act and how it would impact service delivery and departments going forward. The proposed tenants conference could provide an opportunity to hear more about this. 

ACTION: Head of Innovation and Improvement

Officers provided the following information in response to questions:

• Whilst gas prices had decreased, the supply had a large deficit as the reserve supply had previously been used to bring down costs to residents, therefore charges may not decrease so reserves could be replenished.
• The HRA borrowed both externally and internally.
• Some of the external debt included loans from the Public Works Loan Board, which would be paid back over 50 years. However, interest rates were increasing on all borrowing, including internal, which had resulted in increased costs.
• Camden’s housing strategy placed importance on maintaining existing stock, through the Community Investment Programme (CIP) and the Better Homes programme, but it was also considered important to build new homes as well.  
• The Better Homes programme included kitchen and bathroom refits but also works on roofs and windows.
• Maintaining properties was import and it was a huge responsibility to keep homes in good condition and problems with damp and mould should be urgently addressed to ensure that residents did not live in unsafe and unhealthy conditions.
• There was also a desperate need for more social housing, so there had to be a balance between maintaining existing stock and providing new homes.
• The Chalcots Estate evacuation had been costly and central government had assured the council that costs would be reimbursed, however this had not yet happened. Total costs, including replacement cladding and evacuation, had reached up to £130 million, and it was thought that only half these costs would be reimbursed. This had a huge impact on budgets.
• The Cabinet Member for Better Homes advised that borrowing through CIP and HRA was very complex, but it may be beneficial for DMC Members to be provided a breakdown of the borrowing and how this money was budgeted and spent. 

ACTION: Team Leader (HRA & Capital Projects)

• The costs associated with the Social Housing Regulation Act 2023, were not yet clear but £195,000 had been budgeted for this.
• The HRA reserves had been depleted in recent years and it was critically important that it was replenished as quickly as possible to ensure financial stability. The reserves were currently at £23 million.
• It had been proposed that some savings could be made by increasing rent on garages, reviewing the leaseholder budget, improving collection of rent arrears, the housing service transformation programme, improving efficiency in repairs service, and refinancing debt.
• It was requested that more information on savings should be added to the report.

ACTION: Team Leader (HRA & Capital Projects)

• Opportunities and options were under consideration to increase the number of family homes available in the borough, and a strategic approach would be taken to make best use of current housing stock.
• A Zoom meeting had been scheduled on 14^th December 2023 for residents to discuss the heating pool. The DMC asked for clarification at this meeting on how efficiency savings could be made on communal gas supplies as residents were faced with high charges and did not have the option of switching off to save money. 

ACTION: Tennant Participation 

A DMC Member made a proposal that the rent setting meeting, scheduled to take place on 10^th January 2023 should be boycotted as the meeting was perceived by residents to be a box ticking exercise and served as a ‘rubber stamp’, as the Council would agree to the rent and service charge increases regardless of the views expressed by DMC Members and residents.

As such, DMC Members proposed and seconded that the rent setting meeting be boycotted, and on being put to the vote with seven in favour and one against, it was

RESOLVED –

THAT Kentish Town DMC boycott the rent setting meeting scheduled to take place on 10^th January 2023. 

The DMC then discussed ideas for a boycott and the following comments were made:

• A written motion should be bought to the rent setting meeting outlining the views of all residents and the reasons for a boycott.
• The motion could include case studies and real life examples of how the rent increase would impact residents, for example those struggling with low wages and fuel poverty.
• Some members felt morally obligated to boycott the meeting as they could not justify going to a meeting to discuss rent increases knowing how many residents were struggling with the cost of living.
• Other DMCs could be invited to sign the motion and then a walk out could be staged in protest of the rent increases.
• Some DMC Members felt it was important to attend the meeting to represent residents on their estates and give a collective view on the proposed increases.
• Some DMC Members thought that it might be more meaningful for residents to come to the meeting and express their concerns as a united group and refuse to vote on the increases.
• It was suggested that residents should be consulted on possible action before coming to a decision on the next steps and that a consensus should be formed before any action was taken.

It was suggested that DMC Member consider the points raised and discuss the next steps outside of the meeting.