Agenda item - HRA Borrowing Cap

Extract from the proceedings of the Housing & New Homes Committee meeting held on the 13^th March, 2019, together with a report of the Executive Director Neighbourhoods, Communities & Housing (copies attached).

101.1   Councillor Gibson stated that the provision of new homes in the city had to be a priority and whilst he welcomed the up-scaling of the ambition to increase the number of new homes, he did not feel it was enough. There had been 232 homes sold under the right to buy scheme with less than 200 replacing them.  He also noted that less than a quarter of the right to buy receipts had been used and believed that double the number of houses could be added to the available supply.  He hoped that the council would do better during the next term and that a clear plan would be identified.

101.2   Councillor Mears welcomed the Government’s decision to remove the restriction on the borrowing rate and stated that the council could be more creative in identifying sites for housing.  There was a clear deficit of affordable housing in the city and this needed to be addressed, but she was only concerned about the HRA and use of funds for the General Fund rather than the HRA and hoped that the use of right to buy receipts would be allocated to the HRA.

101.3   Councillor Hill welcomed the referral of the report and noted how much had been achieved over the last four-years and work undertaken across various areas to enable the provision of new homes in the city.  She noted that the Borrowing Cap had been lifted which was helpful and that the process for utilising right to buy receipts needed to be addressed. She hoped that going forward the Groups would be able to work together to ensure that available funds were used, and new homes provided.

101.4   The Mayor stated that the report had been referred for information and moved that it be noted.

101.5   RESOLVED: That the report be noted.