Agenda item

*RESOLVED –

1)                That for 2015/16 individual social rents be set based on the current National Social Rent Policy, giving a real rent increase of 2.2% with effect from 6 April 2015.

2)                That for 2015/16 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 2015/16 individual affordable rents be set based on the current National Social Rent Policy, giving a real rent increase of 2.2% with effect from 6 April 2015.

4)                That for 2015/16 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 for a similar property prevailing at the time of re-letting.

5)                That charges for heating tickets be raised by £2.00 to £24.16 so that the costs of the CHP district heating scheme move further towards a breakeven budget position. This increase will only affect tenants until such times as the remaining District Heating System has been removed at Lowgates which is scheduled to take place during 2015/16.

6)                That the following revised levels of charges be agreed:

a)  Heating service charges (Sheltered Schemes) – no increase.

b)  Garage rents – an increase of 5% from £5.45 to £5.72 per week.

c)  Garage Sites – an increase of 5% from £37.00 to £39.00 per annum (Shale); from £47.00 to £49.00 per annum (Asphalt); and from £52.00 to £54.00 per annum (Other).

d)  Tenants Metered Water Charges – no increase.

e)  Garden Assistance Scheme –an increase of 10% to the following weekly charge; grass cutting and hedges from £3.60 to £3.95; grass only from £2.55 to £2.80; hedges only from £1.05 to £1.15.

f)   Sheltered Scheme Service Charge – an increase of 5% from £5.32 to £5.59.

g) Careline – an increase of 50p per week (17%) from £2.90 to £3.40.

h) Charges in respect of Community Rooms – no increase.

i)    Communal Staircase Cleaning – an increase of 5% from £1.58 to £1.66 per week.

In accordance with the Local Government and Housing Act 1989, the Housing Service Manager – Business Planning and Strategy and the Chief Finance Officer submitted a report setting out proposed increases in Council house rent and service charge levels for 2015/16.

Members were advised that failure to increase Council rents in accordance with National Social Rents Policy could put at risk the Council’s ability to finance future capital investment in the housing stock to the required or desired standard, and to repay debt accrued in becoming a self-financing housing landlord.

Cabinet had agreed in January 2014 (Minute No. 149 (2013/14)) that from 2015/16 onwards individual rents would be set based on the National Social Rent Policy of Consumer Price Index (CPI) plus 1%. The recommended rent increases of 2.2% were calculated based on this policy. The proposed increase was substantially lower than it had been in recent years.

The proposed service charge increases were recommended to move the services gradually towards a breakeven position.

Councillor Russell requested that his vote against the recommendations at paragraphs 9.1.2, 9.1.3, 9.1.4, 9.1.5 and 9.1.6 of the report be recorded.

*RESOLVED –

1)                That for 2015/16 individual social rents be set based on the current National Social Rent Policy, giving a real rent increase of 2.2% with effect from 6 April 2015.

2)                That for 2015/16 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 2015/16 individual affordable rents be set based on the current National Social Rent Policy, giving a real rent increase of 2.2% with effect from 6 April 2015.

4)                That for 2015/16 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 for a similar property prevailing at the time of re-letting.

5)                That charges for heating tickets be raised by £2.00 to £24.16 so that the costs of the CHP district heating scheme move further towards a breakeven budget position. This increase will only affect tenants until such times as the remaining District Heating System has been removed at Lowgates which is scheduled to take place during 2015/16.

6)                That the following revised levels of charges be agreed:

a)  Heating service charges (Sheltered Schemes) – no increase.

b)  Garage rents – an increase of 5% from £5.45 to £5.72 per week.

c)  Garage Sites – an increase of 5% from £37.00 to £39.00 per annum (Shale); from £47.00 to £49.00 per annum (Asphalt); and from £52.00 to £54.00 per annum (Other).

d)  Tenants Metered Water Charges – no increase.

e)  Garden Assistance Scheme –an increase of 10% to the following weekly charge; grass cutting and hedges from £3.60 to £3.95; grass only from £2.55 to £2.80; hedges only from £1.05 to £1.15.

f)   Sheltered Scheme Service Charge – an increase of 5% from £5.32 to £5.59.

g) Careline – an increase of 50p per week (17%) from £2.90 to £3.40.

h) Charges in respect of Community Rooms – no increase.

i)    Communal Staircase Cleaning – an increase of 5% from £1.58 to £1.66 per week.

REASONS FOR DECISIONS

To enable the Council to set the level of Council house rents in accordance with Government guidelines and to set service charges for 2015/16.

To continue with the financial strategy contained in the Housing Revenue Account Business Plan and self financing debt settlement arrangements

To contribute to the Council’s Corporate Priority ‘To improve the quality of life for local people’.