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The Committee received and considered the report from the Finance Director and Housing Director.
Councils borrow within their HRA's in order to invest in the housing stock. This includes programmes such as building more homes to provide further income, or even to refurbish or regenerate existing homes. However, due to each council being limited to how much they could borrow, the debt cap greatly restricted local authorities' ability to invest in building much needed new homes.
In order to help solve the 'housing crisis', the government announced it would scrap the debt cap limitations on how much councils can borrow against their HRA Assets. The HRA debt cap was removed with immediate effect and the new determination came into force on the 30th October 2018.
Authorities are now able to borrow above their original debt cap, to meet their spending requirements and take advantage of interest rates while they remain low.
Councillor Williamson proposed an addition to the recommendations as follows:-
To consider building high quality eco-friendly properties for longevity and health benefits.
The Director of Housing suggests the recommendation should read as follows:
The Council’s new build programme is delivered to be as energy efficient as possible and built to an agreed standard which is designed to reduce ongoing repair and maintenance costs, where this is both viable and appropriate.
RESOLVED:
That the Committee agree that:
- Subject to normal budget approval processes, the repairs and maintenance budget is reduced by £500,000 in 2020/21 and the subsequent two years.
- The released revenue funding is used to support borrowing to fund a programme of acquisition or development of new Council homes within the HRA as set out in the report.
- A review of further opportunities to fund new affordable housing is undertaken following the completion of the next stock condition survey in 2022.
- Opportunities for sites are identified and a programme of delivery including numbers and time frames is developed and reported back to Members as set out in the report.