The Committee considered the report of the Executive Director of Finance and Resources and the Executive Director of Environment and Place, which had been referred direct by the Cabinet from the meeting held on 13 January 2025.

The report set out how investment from the Housing Revenue Account (HRA) would contribute towards meeting housing needs in Southend-on-Sea and presented the outcome of Southend-on-Sea City Council’s annual rent review and associated rent setting proposals for all council dwellings within the HRA for 2025/26.

The Cabinet Member responded to a number of questions in relation to:

·       The projected build cost of the planning passive homes and whether in future the build cost could be separated from the infrastructure cost and reported by square metre.

·       Benchmarking of garage rents and keep the figure under for review.

·       Condition of garage stock and small units which cannot fit in modern cars, and whether there is scope to look at potential redevelopment or consider open parking.

·       The percentage difference in rent between a council home compared to privately rented homes and whether rents could be means tested.

·       There was a debate on whether the proposed passive housing scheme was best value for money.

 Resolved:

That the following decisions of the Cabinet be noted:

“That Cabinet recommends to Council that, as part of the budget setting process, it approves the following increases with effect from 7 April 2025:

1.     An average rent increase of 2.7% on all tenancies.

2.     An average rent increase of 2.7% on shared ownership properties.

3.     An increase of 2.75% on garage rents for tenants and leaseholders to £15.80 per week, a rise consistent with the standard approach taken across the range of City Council’s fees and charges for 2025/26. An increase of 20% on private garage rents to £22.15 (inclusive of VAT). All variants on a standard garage will receive a proportionate increase.

That Cabinet recommends to Council that, as part of the budget setting process, it approves:

4.     South Essex Homes core management fee be agreed at £8,275,000 for 2025/26.

5.     South Essex Homes proposals for an average decrease of 6.1% in service charges to reflect the estimated costs incurred be agreed for 2025/26.

6.      South Essex Homes proposals for an average 22.3% decrease in heating charges for sheltered housing tenants and for hostel tenants to reflect the estimated costs incurred be agreed for 2025/26.

7.     The following appropriations be agreed: • £60,000 to the Repairs Contract Pensions Reserve. • £4,720,000 to the Capital Investment Reserve. • £7,237,000 from the Capital Investment Reserve.

8.     Subject to the approval of items 2.1 through to 2.7 above, the HRA budget for 2025/26 as set out in Appendix 1 be agreed and 2

9.     The value of the Council’s capital allowance from 2025/26 be declared as £70,937,000 as determined in accordance with regulation 16 of the Local Authorities (Capital Finance and Accounting) (England) Regulations.

10.  To delegate authority to the Executive Director for Environment and Place to submit the final bid for the Warm  ...  view the full minutes text for item 50

Report of Executive Director (Finance and Resources) to follow