Agenda item

Annual Housing Revenue Account Rent and Service Charge Increase

Decision:

*RESOLVED –

1. That for 2017/18 individual social rents be set based on the current National Social Rent Policy, giving a cash rent decrease of 1.0% with effect from 3 April 2017.

2. That for 2017/18 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 2017/18 individual affordable rents be set based on the current National Social Rent Policy, giving a cash rent decrease of 1.0% with effect from 3 April 2017.

4. That for 2017/18 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 for a similar property at the time of re-letting.

5. That from 3 April, 2017;

I. heating service charges for Sheltered Schemes are increased from an average of £18.13 to £18.49 per week.

II. garage rents are increased from £6.22 to £6.72 per week.

III. that the annual rental charges for garage sites are increased as below:

· Shale sites from £42.50 to £45.90

· Asphalt sites from £53.50 to £57.80

· Other sites from £58.50 to £63.20

IV. Tenants Metered Water Charges are increased on average from £3.70 to £3.77 per week.

V. the weekly charges for the Garden Assistance Scheme are increased as below:

· Grass cutting and hedges from £4.45 to £4.70

· Grass only from £3.15 from £3.30

· Hedges only from £1.30 to £1.40

VI. the Sheltered Scheme service charge is increased from £12.57 to £12.78 per week.

VII. there is no increase in the Sheltered Scheme support charge.

VIII. the weekly charges for the Careline service (inclusive of equipment rental) are increased as below:

· Monitor and Response, £5.50 to £6.00

· Monitor, Response and support service, £8 to £8.50

IX. hire rates for Community Rooms be charged at a rate of between £8 and £20 for a 4 hour slot, dependent on the nature of the group hiring the room.

X. the weekly charge for communal staircase cleaning is increased from £1.74 to £2.10.

XI. the Tenant Home Contents Insurance Premium Tax is increased from 9.5% to 10%.

6. That from no later than 1 April, 2018 the council moves from collecting rent from a 48 to a 52 week basis, and that tenant consultation on this and other changes to the tenancy agreement takes place during 2017/18.

REASONS FOR DECISIONS

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

2. To enable the council to set service charges for 2017/18 and to 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’.

Minutes:

In accordance with the Local Government and Housing Act 1989, the Housing Manager and the Director of Finance and Resources submitted a report setting out proposed increases in Council house rent and service charge levels for 2017/18.

In 2012 the Council had entered into a Housing Revenue Account (HRA) self-financing agreement, and as a consequence was required to produce a HRA Business Plan that was financially viable, delivered reasonable standards for tenants and maintained properties to at least the minimum Decent Homes Standard. The report noted that in March, 2016 the Welfare Reform and Work Act 2016 had introduced rent policy within legislation for the first time. This had meant that from April, 2016, and in each year up to April 2020, Chesterfield Borough Council housing rents for existing tenants had to decrease by 1% from the chargeable rent for each individual property as they had been at, as on 8 July 2015.

The Housing Manager noted that with the role out of Universal Credit to all claimants in Chesterfield during 2017/18 the Housing Benefit element would no longer be paid directly to the council on a weekly basis but would instead be paid directly to tenants. This would be paid four weekly in arrears with responsibility for the payment of the rent to the council being with the tenant. As Universal Credit would be paid on a 52 week basis it was recommended that rent collection by the council should change from a 48 to a 52 week basis so to ensure that tenants would have sufficient income to pay their rent. The report noted that tenant consultation would take place on this and other proposed changes to the tenancy agreement during 2017/18.

The Housing Manager’s report also outlined proposed increases to the Housing Revenue Account Service Charges for tenants. Increases to service charges were only proposed to ensure that the charges made covered the cost of providing the service.