Agenda item

To receive a presentation in relation to the cost of living and the impact on rent collections.

The sub-committee received a presentation in relation to the cost of living and the impact that this was having on the Housing Revenue Account (HRA) and on Council tenants.

It was explained that there was a requirement to have 30-year HRA Business Plan in order to be able to project forward and maintain council stock.  The policy priorities of the HRA included maintaining the decent homes standard of existing stock, affordable homes and maximising income collection whilst supporting tenants to avoid falling into rent arrears.

The sub-committee was informed of potential risks in relation to the delivery of the business plan.  The Government was consulting on a rent increase between 3 and 7% which was well below current inflation.  The Pay Award 2022-23, along with any future pay awards, would put pressure on the cost base and the increase in cost of materials and sub-contractors also put pressures on the business plan.  These pressures would impact on the Repairs Budget and Investment Plan, with less scope for major works and a likely reduced resource available for new build affordable homes.

Members were presented with details of how the cost-of-living increases were impacting on rent collections.  It was noted that at present there was no significant increase in the overall arrears or the number of tenants in arrears.  The overall arrears for Council tenants were £88,651 higher than the same time last year; less than the figure projected.  There were 48 less tenants in arrears than there were at the same time the previous year, though the average arrears per tenant was £16.50 higher than it was last year.

Members were informed that the number of tenants that were ending their tenancy had increased.  The number of terminations where ‘financial difficulties’ was cited as the reason doubled from 2020/21 to 2021/22.  Throughout 2022/23 this number had remained relatively stable.  Bankruptcy among council tenants was increasing significantly, with the average bankruptcy debt increasing 16.06% since the previous year.

Data from the Citizens Advice Bureau demonstrated the increased use of food banks, and it was noted that housing teams would work with tenants on a long-term basis, looking where possible to manage and sustain tenancies.  Members were informed of the support and one-off payments available to residents to help with the increased cost of living.  It was noted that the Welfare and Tenancy Support Team would help tenants to review income and expenditure, with the option to see if all benefit entitlement was being claimed.  Work would also be undertaken in relation to employment and skills to help tenants improve money matters, interview skills and job opportunities.

The resources available for rent collection was discussed and it was noted that carrying out the role of supporting tenants and collection of rent was becoming more challenging as a combined role.  Work was being done to look at separating some of these activities, so that more time could be dedicated to considering the individual circumstances of tenants.  The sub-committee discussed the importance of making sure tenancies can be sustained and it was highlighted that officers would work with tenants to try and identify a more affordable property if this was requested by tenants.  Though it was noted that this would be down to the availability of appropriate properties.  Tenants could also, following the correct process, rent out a room in their property in order to maximise income.

It was agreed to note the presentation and the information presented.