(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:-
(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.