Agenda item

Housing Revenue Account – Rents and Service Charges for 2019/2020

Report of the Strategic Director of Adult Care, Housing and Public Health

 

Recommendations:-

 

1.    That Cabinet recommend to Council:-

 

(a)  That dwelling rents are reduced by 1% for 2019/20 in line with the requirements outlined in the Welfare Reform and Work Act 2016.

(b)  That there is a 2.4% increase to charges for garage rents, communal facilities, cooking gas and laundry facilities in 2019/20 in line with the increase in Consumer Price Index (CPI) as at September 2018.

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

(d)  Agree the draft Housing Revenue Account budget for 2019/20.

(e)  That rents and service charges will be collected over 52 weeks in line with Universal Credit payments.

 

Minutes:

Consideration was given to the report which sought approval for the proposed values for the setting of the housing rents, non-dwelling rents, District Heating and service charges and the draft Housing Revenue Account Budget for 2019/20.

 

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 rents would be reduced by 1% for a fourth and final year from April, 2019.

 

In previous years increases to charges for non-dwelling rents have been linked to changes in CPI.  As at September, 2018 CPI was 2.4% and, therefore, it was proposed to increase charges for garages and communal facilities including laundry and cooking gas by 2.4%.

 

During 2017-18 there was an extensive review of district heating pricing to ensure that charges were fair and reasonable to all tenants. However, the latest forecast for 2018/19 was that the scheme would be in deficit by £16k, therefore, it was proposed to leave district heating charges unchanged.

 

Resolved:-  That Council be asked to approve:-

 

(a)        That dwelling rents are reduced by 1% for 2019/20 in line with the requirements outlined in the Welfare Reform and Work Act 2016.

(b)        That there is a 2.4% increase to charges for garage rents, communal facilities, cooking gas and laundry facilities in 2019/20 in line with the increase in Consumer Price Index (CPI) as at September 2018.

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

(d)        Agree the draft Housing Revenue Account budget for 2019/20.

(e)        That rents and service charges will be collected over 52 weeks in line with Universal Credit payments.

Supporting documents: