Issue - meetings

Housing Rents & Service Charges

Meeting: 14/01/2020 - Executive (Item 8)

8 Housing Rents and Service Charges 2020-21 pdf icon PDF 78 KB

To consider the report of the Chief Finance Officer.

 

Additional documents:

Decision:

Agreed

RECOMMENDED that Council approve:-

 

(1)  the increase of Council dwelling rent by 2.7% from 1 April 2020;

(2)  the increase of garage rent by 2.7% from 1 April 2020; and

(3)  service charges remaining at their existing levels with the exception of charges specified below from 1 April 2020:-

 

(a)    5.9% increase in emergency light testing in line with routine testing costs and additional installations;

(b)    2% decrease in respect of the Older Persons’ property service charge due to vacant posts;

(c)       0% increase in water charges in respect of Magdalen Gardens in line with contract prices;

(d)    5% decrease in respect of door entry systems in line with system maintenance costs; and

(e)    5% increase in fire alarm charges to reflect the contract for weekly fire alarm testing.

 

Reason for Decision:

As set out in the report.

 

 

 

 

Minutes:

The Executive received the report which set out the proposed increase to Council house rent, garage rent and service charges with effect from 1 April 2020 that would not override a landlords statutory requirement to complete the four year social rent reductions.

 

Particular reference was made to the 1% social rent reductions made by the Council over the past four years, and that it was now permitted to apply the new central government policy to make a 1% increase above CPI for 2020/21. The increase to the charges would support additional maintenance, the Capital Programme and support the management of existing properties for tenants.

 

During the discussion, the following points were raised:-

 

·         The 1% reduction left the Council with a deficit of £8 million but had only equated to 75p less rent per week for tenants. The increase would also put the Council back to its 2016 budgetary position; and

·         The increase would provide support for staffing, spending on maintenance and would support the Council’s HRA budget.

 

RECOMMENDED that Council approve:-

 

(1)  the increase of Council dwelling rent by 2.7% from 1 April 2020;

(2)  the increase of garage rent by 2.7% from 1 April 2020; and

(3)  service charges remaining at their existing levels with the exception of charges specified below from 1 April 2020:-

 

(a)    5.9% increase in emergency light testing in line with routine testing costs and additional installations;

(b)    2% decrease in respect of the Older Persons’ property service charge due to vacant posts;

(c)       0% increase in water charges in respect of Magdalen Gardens in line with contract prices;

(d)    5% decrease in respect of door entry systems in line with system maintenance costs; and

(e)    5% increase in fire alarm charges to reflect the contract for weekly fire alarm testing.