Issue - meetings

To consider a recommendation from Cabinet in respect of the rents and service charges in respect of the Housing Revenue Account for the 2018/19 financial year.

At its meeting on 15th January, 2018, the Cabinet considered a report which sought approval for the proposed values for the setting of the housing rents, non- dwelling rents and service charges for 2018/19.

In October 2017 the Government confirmed details of future social rent policy from 2020, after the four-year period of 1% rent decreases ended.

The announcement confirmed that for the five years from 2020/21, providers would be able to increase rents, up to a limit of Consumer Price Inflation (CPI) plus 1% each year.

This report also considered proposed increases to charges for garages, garage plot sites, cooking gas and communal facilities including laundry services where provided, maintaining District Heating charges for 2018/19 and summarised the draft HRA budget.

Resolved:-  (1)  That dwelling rents be reduced by 1% for 2018/19 in line with the requirements outlined in the Welfare Reform and Work Act 2016.

(2)  That there be a 3% increase to charges for garage rents, communal facilities, cooking gas and laundry facilities in 2018/19 in line with the increase in Consumer Price Index as at September 2017.

(3)  That the unit charge per Kwh for District Heating Schemes remain at the same level as agreed by the Council in December 2017.

(4)  That the draft Housing Revenue Account budget for 2018/19 be approved.

Mover:-  Councillor Beck                                  Seconder:-  Councillor Alam

Report of the Strategic Director of Adult Care and Housing

Cabinet Member:     Councillor Beck

Commissioner:         Kenny (in advisory role)

Recommendations:

That Cabinet recommend to Council:-

1.     That dwelling rents are reduced by 1% for 2018/19 in line with the requirements outlined in the Welfare Reform and Work Act 2016.

2.     That there is a 3% increase to charges for garage rents, communal facilities, cooking gas and laundry facilities in 2018/19 in line with the increase in Consumer Price Index as at September 2017.

3.     That the unit charge per Kwh for District Heating Schemes remains at the same level as agreed by the Council in December 2017.

4.     That the draft Housing Revenue Account budget for 2018/19 be approved.

Consideration was given to the report which sought approval for the proposed values for the setting of the housing rents, non-dwelling rents and service charges for 2018/19.

Changes to the Government’s policy on social housing rents resulted in the requirement to reduce dwelling rents by 1% over four years from April 2016.  To comply with the legislation it was proposed that rents would be reduced by 1% for a third year from April, 2018.

In previous years increases to charges for non-dwelling rents have been linked to changes in CPI.  As at September 2017 CPI was 3% and, therefore, it was proposed to increase charges for garages and communal facilities including laundry and cooking gas by 3%.

This report had been considered by the Overview and Scrutiny Management Board as part of the pre-scrutiny process who were in support of the recommendations.

Resolved:-  (1)  That Council be recommended to approve that dwelling rents be reduced by 1% for 2018/19 in line with the requirements outlined in the Welfare Reform and Work Act 2016.

(2)  That there is a 3% increase to charges for garage rents, communal facilities, cooking gas and laundry facilities in 2018/19 in line with the increase in Consumer Price Index as at September 2017.

(3)  That the unit charge per Kwh for District Heating Schemes remains at the same level as agreed by the Council in December, 2017.

(4)  That the draft Housing Revenue Account budget for 2018/19 be approved.

Consideration was given to the report which sought approval for the proposed values for the setting of the housing rents, non- dwelling rents and service charges for 2018/19.

Members referred to the district hearing scheme and the fluctuation of gas prices in the energy market and indicated that the cost of capital works in different schemes would need to be borne in mind in future.

Resolved:- 

That Cabinet be advised that the recommendations be supported.