2022-23 Rent setting consultation - West Dunbartonshire Council Public Meeting to - West ...
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West Dunbartonshire Council
to
2022-23 Rent setting consultation
Public Meeting
11 November 2021
4:00pm – 5:30pm Virtual Meeting via Zoom
Peter Barry
Chief Officer,
Housing and Employability
An improving housing service
2021/22 so far.. • Continuing to respond to the impact of the Covid-
19 pandemic
Challenges • Significant increase in demand for homelessness
services and temporary accommodation
• On-going impact on repairs service and medical
Minimising the impact adaptations
of the significant • Improvements around management of empty
challenges posed by the homes have been affected
Covid-19 pandemic.• “More Homes, Better Homes” continues to deliver
record levels of investment
2021/22 so far..
• No Home for Domestic Abuse approach
strengthened
Achievements
• Development of new Local Housing Strategy
• Covid-19 Recovery Plans being implemented across
housing services
Continuing to invest
and deliver improved • New approaches to homelessness including the
housing services. upscaling of Housing First
• Implementation of our Integrated Housing Project
• Tenant Participation and Scrutiny shortlisted for
national CIH Award2022/23 • 388 new homes being built
budget setting • 500 new central heating systems
process • 370 new roof coverings
• 350 external insulated render
• 270 window/door renewals
New build
programme and • 100 kitchen renewals
continued Capital • 100 bathroom renewals
Investment in
existing homes • 300 electric shower installations
• 200 medical adaptationsA strong
commitment Average Weekly Rent
to keeping £95
rents £90 89.90
affordable £85
83.80
81.44
£80
79.30
£75
£70
£65
2016 2017 2018 2019 2020 2021
Scottish Average All LAs All RSLs WDCA strong
commitment
to keeping Rent Increase 2021/22
rents 3.5%
affordable 3.0%
2.5%
2.0%
1.5% 1.6%
1.3% 1.3%
1.5%
1.0%
0.5%
0.0%
WDC All RSLs Scottish Average All LAsA strong commitment to keeping rents affordable Tenant views on affordability and value for money
Janice Rainey Finance Business Partner
process
Estimates and
Estimates
budget and
setting
process
budget setting • Continued transparent approach based on
engagement with Joint Rent Group
process
• Review of financial assumptions in Business Plan
• Ensuring long-term affordability for Housing
Revenue Account
• Delivering Value for Money services for tenantsTotal expenditure 2022/23 draft budget £46,351,833
Rent increase Less estimated other income 2022/23 £1,778,812
required Less estimated rental income 2022/23 £43,711,561
based on Deficit £861,460
2022/23 draft
budget Deficit as % rental income:
Deficit/House rents (£m/£m) 2%
Average rent 21/22 (52 weeks) £82.72
Proposed average increase per week (52 weeks) £1.65
Revised average rent (52 weeks ) £84.37Rent increases 8%
over recent 7%
6%
years 5%
compared to 4%
inflation, 3%
pensions and 2%
living wage 1%
increases 0%
16/17 17/18 18/19 19/20 20/21 21/22 22/23
rent increase Inflation pension increase Living wage increaseHRA budgeted Other £0.02 Bad Debt
Provision £0.02
expenditure Repairs and
Maintenance
for every £1 £0.25
spend 2022/23 Loan Charges
£0.43
Staffing Costs
£0.282022/23 HRA
Capital
Programme New build
Other capital
£23.964m
(£44.362m) projects
£20.398 mBathrooms, Kitchens,
Heating, £1,000
2022/23 HRA
Capital Budget Other capital
expenditure, £3,941
(Excluding Affordable
Housing Supply) Roofs/Doors/Window
Renewals, £7,028 Targeted EESSH
compliance Works,
£3,715
Void repairs, Statutory/Regulatory,
Structural Works, £2,000 £108
£2,606Rent Setting Options
for 2022/23We want to keep your rent increase as low as possible so this year we aren’t proposing any options for higher rent increases that we know tenants don’t want. All options are therefore based on a 2% rent increase which is the minimum required and still continue to: • Deliver all current services that tenants receive • Continue our New Build housing programme • Deliver our Capital programme of investment
We do want to know how you think the £800,000 Tenant Priority Budget should be spent in 2022/23. This is an annual budget that gets used for tenant proposed improvements. Over previous years consultations and from the WDTRO, we know that this is a valued budget for tenants that they want to keep. There is flexibility about how it can be spent and different options have been developed in partnership with the Joint Rent Group and WDTRO to focus on improving energy efficiency through External Wall Insulation (EWI) and energy saving light bulbs which can help reduce tenant’s energy costs for many years.
Option 1
2% increase This option will mean:
• Retaining a Tenant Priority Budget of £800,000.
Average weekly increase
of £1.65This option will mean:
Option 2
• Retaining a Tenant Priority Budget of
2% increase £400,000, and
• Using £400,000 from the Tenant Priority
Average weekly increase Budget to accelerate the EWI programme
of £1.65 which would see an additional 32
properties being upgraded in 2022/23.This option will mean:
• Retaining a Tenant Priority Budget of £274,000,
Option 3
o
• Using £400,000 from the Tenant Priority Budget
2.% increase to accelerate the EWI programme, which would
see an additional 32 properties being upgraded in
2022/23, and
Average weekly increase • Using £126,000 from the Tenant Priority Budget
of £1.65
to provide all tenants with 6 energy efficient light
bulbs.Consultation timetable
2022/23 Rent Setting Consultation Process
Agree timeline for rent setting consultation Chief Officer 27/09/2021
Phase 1 - Preparation Draft 2022/23 HRA budget estimates and refresh of 30 year Business Plan Finance Business Partner 01/10/2021
Develop costed rent options based on tenant priorities All 19/10/2021
Virtual meeting to launch formal consultation Housing Development 11/11/2021
Phase 2 - Consultation Promotion of consultation over 11 week period including communication to all tenants Housing Development 20/01/2022
Close of formal consultation Housing Development 20/01/2022
Prepare report for Council Finance Business Partner 15/02/2022
Prepare HRA Budget Document Housing Development 15/02/2021
Phase 3 - Approval pre Council meeting with Housing Convenor and tenants Housing Development 07/03/2022
Council meeting to agree 2022/23 rent setting Elected Members 09/03/2022
Letter sent to all tenants advising of 2022/23 rent level Finance 09/03/2022You can also read
