Issue - meetings

To consider the report of the Assistant Director Finance and the Assistant Director Housing and Contracts.

Scrutiny Committee – Community will consider the report at its meeting on 15 January 2013 and comments will be reported.

(Report circulated)

(Minute 4)

The joint report of the Assistant Director Finance and the Assistant Director Housing and Contracts was submitted recommending a rent and service charge increase from 1 April 2013 for Council dwellings and garages.

The report was submitted to the Scrutiny Committee – Community on 15 January 2013 and the support and comments of members were noted.

Executive welcomed the introduction of self-financing of the Housing Revenue Account in April 2012 which enabled the Council to retain rents for investment in its housing stock.  Members noted that the Government was keen for local authorities to continue working towards the social rent policy, whereby convergence with housing associations would be achieved by 2015-16. Rents would then follow the same formula as for housing associations; currently an increase of RPI + 0.50% per annum. 

Members commented that the convergence with housing association rents had been on-going over a long period and requested officers to monitor the increases in housing association rents and the current position on rents regulation.

Executive resolved that:-

(1)     rents of Council dwellings are increased from 1 April 2013, by an average of 6% which includes a general inflationary increase of 3.1% together with the phased introduction of the Government’s rent restructuring proposals; and

(2)     service charges are increased by 3.1% with the exception of the following charges:-

• 2.5% increase in respect of cleaning communal areas in line with anticipated rises in cleaning contract costs
• 0% increase in respect of communal electricity at Weirfield House
• 0% increase in respect of water at Magdalen Gardens
• 14% increase in respect of heating at Toronto House due to rise in consumption and gas costs (heating system programmed to be replaced during 2013-14)

(3)     garage rents are increased by 3.1%; and

(4)     the Assistant Director Housing and Contracts be requested to report to Scrutiny Committee - Community in due course about rent levels charged by other registered housing providers and the position on rents regulation.

The joint report of the Assistant Director Finance and the Assistant Director Housing and Contracts was submitted recommending a rent and service charge increase from 1 April 2013 for Council dwellings and garages.

The report was submitted to the Scrutiny Committee – Community on 15 January 2013 and the support and comments of members were noted.

Executive welcomed the introduction of self-financing of the Housing Revenue Account in April 2012 which enabled the Council to retain rents for investment in its housing stock.  Members noted that the Government was keen for local authorities to continue working towards the social rent policy, whereby convergence with housing associations would be achieved by 2015-16. Rents would then follow the same formula as for housing associations; currently an increase of RPI + 0.50% per annum. 

Members commented that the convergence with housing association rents had been on-going over a long period and requested officers to monitor the increases in housing association rents and the current position on rents regulation.

RESOLVED that:-

(1)     rents of Council dwellings are increased from 1 April 2013, by an average of 6% which includes a general inflationary increase of 3.1% together with the phased introduction of the Government’s rent restructuring proposals; and

(2)     service charges are increased by 3.1% with the exception of the following charges:-

• 2.5% increase in respect of cleaning communal areas in line with anticipated rises in cleaning contract costs
• 0% increase in respect of communal electricity at Weirfield House
• 0% increase in respect of water at Magdalen Gardens
• 14% increase in respect of heating at Toronto House due to rise in consumption and gas costs (heating system programmed to be replaced during 2013-14)

(3)     garage rents are increased by 3.1%; and

(4)     the Assistant Director Housing and Contracts be requested to report to Scrutiny Committee - Community in due course about rent levels charged by other registered housing providers and the position on rents regulation.

(Report circulated)

To consider the joint report of the Assistant Director Finance and the Assistant Director Housing and Contracts – report circulated

The Housing Needs Manager presented the report recommending a rent increase for council dwellings from 1 April 2013.

An increase was proposed reflecting a general inflationary increase of 3.1% together with a convergence factor to reflect the number of years to rental convergence. The draft subsidy determination was based upon convergence by 2015-16. The rent increase, on average, would be 6%.

The current Government guidelines were that service charges should only be increased by RPI plus 0.50%. For 2013/14 this equated to an increase of 3.1%.

Scrutiny Committee - Community noted the report and recommended Executive to:-

(1)        approve a rent increase by an average of 6% from 1 April 2013 which includes a general inflationary increase of 3.1% together with the phased introduction of the Government’s rent restructuring proposals;

(2)        approve a service charge increase of 3.1% with the exception of those charges set out below:-

(a)        2.5% increase in respect of cleaning communal areas in line with anticipated rises in cleaning contract costs;

(b)        0% increase in respect of communal electricity at Weirfield House;

            (c)        0% increase in respect of water at Magdalen Gardens; and

(d)        14% increase in heating in respect of Toronto House due to the rises in both consumption and gas costs (heating system programmed to be replaced during 2013/14); and

(3)        an increase in garage rents of 3.1%.

(Report circulated)