Issue - meetings

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

Scrutiny Committee – Community considered the report at its meeting on 19 January 2016 and its comments will be reported.

The joint report of the Assistant Director Finance and Assistant Director Housing was submitted recommending a 1% rent decrease for council dwellings from 1 April 2016.

The Service Lead Performance Strategy and Resources advised that the 10 year inflation linked rent settlement had been replaced with a new rent reduction policy announced in July, requiring social landlords to reduce rents by 1% annually for each of the next four years. This would result in an expected loss in income to the Housing Revenue account of £7.9 million.

The Leader commented that, whilst this reduction was good news for tenants, it would result in a loss of income for the Council.

Scrutiny Committee – Community considered the report at its meeting on 19 January 2016 and its comments were reported.

RESOLVED that:-

(1)     rents of Council dwellings are reduced by 1% from 1 April 2016;

(2)     garagerents remain at their existing levels from 1 April 2016; and

(3)     service charges remain at their existing levels, with the exception of charges specified below from 1 April 2016

(a)              1.2% increase in respect of cleaning communal areas in line with anticipated rises in cleaning contract costs;

(b)              3.5% increase in respect of fire alarm testing in line with rises in maintenance and monitoring contract costs; and

(c)              5% increase in respect of repair costs in line with Building Cost Information Service (BCIS) rates.

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

Scrutiny Committee – Community considered the report at its meeting on 21 January 2015 and its comments will be reported.

The joint report of the Assistant Director Finance and Assistant Director Housing was submitted setting out the proposed increases in respect of council dwelling rents, garage rents and service charges with effect from 1 April 2015.

The Assistant Director Housing advised of the proposed increase in rents of Council dwellings and garages of 2.2%. Services charges were limited to covering the cost of providing the services, therefore, whilst some would increase by 2.2% there were exceptions and these were detailed in the report. Government guidelines advised that authorities should endeavour to keep increases from service charges in-line with rent changes which were Consumer Price Index + 1%. Further work had been undertaken on the housing association rents within the city and the results showed an average weekly rent for a two bedroom flat was £100 per week.

Scrutiny Committee – Community considered the report at its meeting on 21 January 2015 and its comments were reported.

RESOLVED that:-

(1)          rents of Council dwellings are increased by 2.2% from 1 April 2015;

(2)          garage rents are increased by 2.2% from 1 April 2015;

(3)          service charges are increased by 2.2%, with the exception of charges specified below from 1 April 2015;

(a)        2.8% 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;

(d)       3.1% increase in respect of fire alarm testing in line with rises in maintenance and monitoring contract costs; and

(e)       5% increase in respect of repair costs in line with Building Cost Information Service (BCIS) rates.

(4)          in principle to charge full market rent to tenants with a household income of at least £60,000; and

(5)          the flexibility to let new-build council housing at ‘affordable rents’ – up to 80 % of local market rent, where considered appropriate.

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

.

Councillor Raybould declared a disclosable pecuniary interest and withdrew from the meeting whilst this matter was discussed.

The Technical Accounting Manager presented the report recommending a rent increase for council dwellings from 1 April 2015.

The Government had announced a new social housing rent policy to apply for ten years from 2015-16 to 2024-25.  Under the new policy, rents in the social sector should increase by Consumer Price Index (CPI) inflation by + 1% annually. Social rents would continue to be set on the current basis, whereby rent per property was calculated using a national formula reflecting the value of the property, number of bedrooms and local earnings. The main change was the move from an annual limit on weekly rents of Retail Price Index + 0.5% + up to £2, to a limit of Consumer Price Index + 1%, following the Office for National Statistics announcement that the Retail Price Index no longer met international standards for an inflation-index.

Therefore, in accordance with the Government’s policy, it was necessary to implement an increase of 2.2% (CPI + 1%).  For 2015-16 this would result in an average increase £1.65 per week, over 52 weeks, per property.

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

(1)        a rent increase for Council dwellings of 2.2% from 1 April 2015;

(2)        an increase in garage rents of 2.2% from 1 April 2015;

(3)        an increase of service charges by 2.2%, with the exception of the charges specified below from 1 April 2015:-

(a)        2.8% 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;

(d)        3.1% increase in respect of fire alarm testing in line with rises in maintenance and monitoring contract costs; and

(e)        5% increase in respect of repair costs in line with Building Cost Information Service (BCIS) rates.

(5)        the charging, in principle, of full market rent to tenants with a household income of at least £60,000; and

(6)        the flexibility to let new-build council housing at “affordable rents”, that is, up to 80% of local market rent where considered appropriate.