Issue - meetings

To consider and provide feedback on the Housing Revenue Account (HRA) Business Plan 2026-2056 and HRA Asset Management strategy 2026-2035 (report of the Assistant Director – Housing enclosed).

The Portfolio Holder for Strategic and Operational Housing introduced the report and stated that they were pleased to present the Council’s Housing Revenue Account Business Plan 2026-2056 and Asset Management Strategy 2026-2035. They explained that the documents had been produced in partnership with Savills and had been shaped by extensive consultation with tenants, Members and senior officers.

The Portfolio Holder reported that the Business Plan set out a robust, evidence?led approach to maintaining and enhancing the Council’s housing stock. It was underpinned by up?to?date stock?condition data and responded to significant changes within the social housing landscape.

They confirmed that the Housing Revenue Account remained sustainable over the full 30?year period. The plan was fully fundable, delivered against all the Council’s principal objectives, and aligned with Local Government Association benchmarks. While the plan included an increase in borrowing to deliver the largest investment programme in the history of the South Holland HRA, they emphasised that this investment was both affordable and necessary to meet government expectations and to ensure that Council homes remained safe, decent and energy?efficient.

The Portfolio Holder explained that the Asset Management Strategy translated these ambitions into a clear five?year capital investment programme. They noted that both documents would be updated annually as part of the Council’s budget?setting process to reflect the latest position and to ensure responsiveness to changing conditions.

All agreed that the report represented a thorough piece of work and noted that the Council was ahead of many others in its approach. Thanks were expressed to the team involved.

A query was raised regarding wording within the document that referred to spending £62,100 on each property. It was clarified that this figure represented an average rather than a literal sum allocated to every individual property. It was suggested that the wording should be adjusted to avoid potential misunderstanding by readers. Officers confirmed that the amendment would be made.

Concern was raised regarding the costs associated with sewerage systems, particularly the replacement of sewage treatment facilities. It was asked whether the figures presented took account of private properties that were connected to Council?owned systems, and how such arrangements had been considered within the plan.

Officers confirmed that each site had been assessed on its own merits, with pricing and business?plan assumptions reflecting whether connections served private or Council?owned properties. It was noted that all 49 sites referenced in the report had been individually reviewed.

A further query was raised about whether any additional sites within the district had since been connected to mains sewerage systems, given evolving regulatory expectations from the Environment Agency and Anglian Water. The Member observed that stricter positions were being taken on the discharge from package treatment plants and suggested that this was an area requiring ongoing attention.

Officers advised that alternative options had been explored, including whether upgrades could move beyond like?for?like replacement. Advice received to date had indicated that like?for?like replacement remained the appropriate approach,  ...  view the full minutes text for item 89

To consider and provide feedback on the Housing Revenue Account (HRA) Business Plan 2026-2056 and HRA Asset Management strategy 2026-2035 (report of the Assistant Director – Housing enclosed).

Consideration was given to the report of the Assistant Director - Housing which asked members to provide feedback on the Housing Revenue Account (HRA) Business Plan 2026-2056 and HRA Asset Management Strategy 2026-2035.

The Assistant Director – Housing and the Portfolio Holder for Strategic and Operational Housing attended for this item, with support from the Director of Finance.

The Assistant Director - Housing introduced the report to members and the following main points were highlighted by way of a presentation (appended to the minutes at Appendix 2):

• Background;
• Headlines;
• Consultation: November 2025;
• Sewage treatment works: update;
• Asset Management Strategy: outcome;
• Stock investment requirements;
• Approach to financing;
• A summary and next steps.

Members considered the report and made the following comments:

• Members reported that residents had given positive feedback regarding the tenant engagement work.

• Members had queried whether an alternative plan had been considered to avoid the Council going into further debt.
  • The Assistant Director - Housing had explained that, based on current modelling and government requirements for energy efficiency and Decent Homes standards, additional borrowing was necessary, however grants and potential rent-setting changes may reduce reliance on debt. The plan would be reviewed annually as part of the budget setting.

• Members asked if divesting housing stock had been considered.
  • The Assistant Director - Housing had confirmed that stock transfer had not been considered as part of this work.

• Members raised concerns about underinvestment in sewage treatment works and pumping stations and whether assets would fail before funding was available.
  • The Assistant Director - Housing responded that, in her opinion, there had not been an underinvestment. An intensive maintenance contract was in place, all sites had been surveyed independently approximately two years ago and are subject to ad-hoc inspections by the Environment Agency. While a capital programme was not in place at present, the existing Medium-Term Financial Strategy had a contingency for capital investment, and the programme would commence during 2026/27.

• Members queried whether South Holland Homes should be brought into the HRA.
  • The Assistant Director - Housing had noted that the acquisition of the units by the HRA was subject to ongoing discussion. Tenant consultation would be necessary; however they would benefit from additional rights under the HRA.

• Members had sought clarification on tenant feedback suggesting disposal of high-cost homes.
  • The Assistant Director - Housing had confirmed that an asset performance evaluation would be undertaken as part of the strategy to identify properties that might be costly to maintain or obsolete. Findings would be reported back to councillors.

• Members had asked whether investment in properties would increase stock valuation.
  • The Director of Finance (Section 151 Officer) explained that valuations were based primarily on rental income rather than component upgrades however poor-quality stock could negatively affect valuation;
  • The Assistant Director - Housing added that capital improvements reduced repairs expenditure and reduced fuel costs for tenants.

• Members had queried the borrowing strategy and options.
  • The Director of Finance (Section 151 Officer) highlighted that borrowing for investment was not inherently negative if affordable  ...  view the full minutes text for item 10