Issue - meetings

1.      That the updated financial business plan be approved, as recommended by Cabinet Committee: Housing.

2.      That the proposed rent increase for 2026/27 of 5.26% to £1100 per month be approved.

3.      That the move to a dynamic renting model following the implementation of the renters rights Bill in May 2026 be approved, allowing for prevailing market rents to apply to individual units at the point of relet. 

Councillor Reach introduced the report    The report had been considered at Cabinet Committee: Housing on 2 February 2026 which had approved the recommendations for consideration by Cabinet.

Ian Tait spoke during public participation as summarised briefly below.

Mr Tait questioned the viability of the company’s business model, arguing that recent economic and regulatory changes would likely prevent the venture from trading with an acceptable surplus. He suggested the council should wind up the company and outsource the management of the 41 Winnall flats to an independent provider rather than persevering with an unproven model.

At the invitation of the Leader, Councillor Horrill addressed Cabinet as summarised briefly below.

Councillor Horrill reiterated her support for a separate housing company to provide diverse tenures and affordable homes, while acknowledging the progress made with residents settling at the Winnall development. She expressed disappointment regarding the lack of proposals to expand the company’s remit for 2026/27 and queried what specific criteria would be used to initiate future market acquisitions.  She queried whether the company was being underutilised and also whether it would resource itself independently rather than continuing to purchase administrative support from the council.

Councillor Batho also spoke during public participation as a council appointed director to the Venta Living board.  His comments are summarised briefly below and he left the meeting following his address to Cabinet.

Councillor Batho described Venta Living as a success for both residents and the council, emphasising its role in providing energy-efficient housing and offering the authority valuable visibility into the private rental market. He detailed the proposed 5.26% rent increase for the flats at Foxglove House and noted that the company was currently focused on consolidation and preparing for the implementation of the Renters’ Rights Bill. Finally, he confirmed that while there are no immediate plans to expand the company’s remit, the directors remained open to evaluating future business cases as new opportunities arise.

Councillor Reach responded to the comments made, including advising that the exempt appendix confirmed that the company was sustainable in the long term.

Cabinet and other members present confirmed they did not wish to go into exempt session to consider further the contents of the exempt appendix.

Cabinet agreed to the following for the reasons set out in the report and outlined above.

RESOLVED:

1.             That the updated financial business plan be approved, as recommended by Cabinet Committee: Housing.

2.             That the proposed rent increase for 2026/27 of 5.26% to £1100 per month be approved.

3.             That the move to a dynamic renting model following the implementation of the renters rights Bill in May 2026 be approved, allowing for prevailing market rents to apply to individual units at the point of relet. 

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That the updated financial business plan, at Appendix A in the exempt appendix to CAB3542(H) be recommended for approval to Cabinet, including:

a)      The proposal to increase rent by 5.26%, to £1,100 per month

b)      The proposed move to a dynamic renting model following the implementation of the renters rights Bill in May 2026, allowing for prevailing market rents to apply to individual units at the point of relet.

c)      To note that operating costs have been reviewed and updated in the business plan model. 

Councillor Reach welcomed Councillors Pett and Batho to the meeting who were both council appointed directors to the Venta Living Ltd board.

The Strategic Director introduced the report explaining it was the standard annual report required as part of the shareholder’s agreement.

Councillors Pett and Batho provided an update on the company’s performance and the proposed financial business plan for the 2026/27 period. It was reported that the company had traded successfully over the previous year and had achieved full occupancy at Foxglove House by the end of the first half of the year. It was noted that tenant feedback was positive and that the company had experienced lower levels of unit turnover than was originally anticipated. The directors advised that future opportunities in the professional House in Multiple Occupation (HMO) sector were being explored, particularly to support groups such as NHS employees, although it was recognised that the current financial climate was not ideal for seeking additional funding from the council as shareholder.

The Strategic Director, the Corporate Head of Housing together with Councillors Pett and Batho responded to questions and comments raised by councillors as summarised below:

a)    A question was asked regarding the decision-making process for future business opportunities.

b)    Further clarification was sought on the rationale for the proposed rent increase to £1,100 per month.

c)    A question was asked regarding the potential impact of the Renters’ Rights Act on the company.

d)    Whether further information was available on the current trends within the local HMO market.

e)    Further information was requested regarding the responsibility for property repairs and recent defect works.

f)      A question was asked regarding the sequence of approvals for rent increases, noting that residents were  informed of  potential changes in January subject to formal notice.

Councillors present confirmed they did not wish to go into exempt session to consider further the contents of the exempt appendix.

The Cabinet Committee agreed the following for the reasons set out above and outlined in the report.

RECOMMENDED (to Cabinet):

That the updated financial business plan, at Appendix A in the exempt appendix to CAB3542(H) be recommended for approval, including:

a)      The proposal to increase rent by 5.26%, to £1,100 per month

b)     The proposed move to a dynamic renting model following the implementation of the renters rights Bill in May 2026, allowing for prevailing market rents to apply to individual units at the point of relet.

c)      To note that operating costs have been reviewed and updated in the business plan model.