Agenda item

*RESOLVED –

1.   That, for 2020/21, individual social rents be set based on the current National Social Rent Policy, giving a rent increase of 2.7% with effect from 6 April, 2020.

2.   That, for 2020/21 and onwards, where a social rent property is re-let to a new or transferring tenant the rent level be increased to the target rent for that property.

3.   That, for 2020/21, individual affordable rents be set based on the current National Social Rent Policy giving a cash rent increase of 2.7% with effect from 6 April, 2020.

4.   That, for 2020/21 and onwards, where an affordable rent property is re-let to a new or transferring tenant the rent level be set by reference to 80% of the market rent (including service charges where applicable) for a similar property at the time of re-letting or the formula rent for the property, whichever is the greater.

5.   That the service charges be increased as set out in Appendix A of the officer’s report.

REASON FOR DECISIONS

1.   To enable the council to set the level of council house rents in accordance with Government guidelines and the Rent Standard.

2.   To enable the council to set service charges for 2020/21 and ensure that the cost of delivering services continues to break even.

3.   To contribute to the council’s corporate priority ‘to improve the quality of life for local people’.

The Assistant Director – Housing submitted a report recommending for approval Council house rent and service charge levels for 2019/20.

The period of rent reductions introduced by the Welfare Reform and Work Act 2016 would elapse on 31 March, 2020 and the Government would revert back to the previous formula which will allow rent increases to be set at up to the consumer price index (CPI) + 1% for the period 2020 to 2025. In addition, from 1 April, 2020, the Government had directed all local authorities to apply its Rent Standard to housing rents (social and affordable). The average social formula rent for 2020/21 would be £80.92 per week, an increase of £2.13 per week based on current social rented stock.

A detailed summary of the proposed service charge levels for 2020/21 was attached at Appendix A of the officer’s report.  It was noted that the proposed charges had been devised to ensure that all services break even on costs.

*RESOLVED –

1.   That, for 2020/21, individual social rents be set based on the current National Social Rent Policy, giving a rent increase of 2.7% with effect from 6 April, 2020.

2.   That, for 2020/21 and onwards, where a social rent property is re-let to a new or transferring tenant the rent level be increased to the target rent for that property.

3.   That, for 2020/21, individual affordable rents be set based on the current National Social Rent Policy giving a cash rent increase of 2.7% with effect from 6 April, 2020.

4.   That, for 2020/21 and onwards, where an affordable rent property is re-let to a new or transferring tenant the rent level be set by reference to 80% of the market rent (including service charges where applicable) for a similar property at the time of re-letting or the formula rent for the property, whichever is the greater.

5.   That the service charges be increased as set out in Appendix A of the officer’s report.

REASON FOR DECISIONS

1.   To enable the council to set the level of council house rents in accordance with Government guidelines and the Rent Standard.

2.   To enable the council to set service charges for 2020/21 and ensure that the cost of delivering services continues to break even.

3.   To contribute to the council’s corporate priority ‘to improve the quality of life for local people’.