Agenda item

Report from the Strategic Director for Adult Care, Housing and Public Health.

Recommendations

That the Cabinet note the content of the report and recommends to Council: -

1.    That dwelling rents are increased by 4.1% in 2022/23 (Option 1) in line with the Government policy on rents for social housing which allows rents to increase by Consumer Price Index (CPI) (as at September 2021) plus 1%.

2.    That shared ownership rents are increased by 5.4% in 2022/23 (Option 1) in line with the Government policy on rents for social housing which allows rents to increase by Retail Price Index (RPI) (as at September 2021) plus 0.5%.

3.    That there is a 2% increase in charges for garages and parking spaces, communal facilities, cooking gas and use of laundry facilities, in line with the Council’s policy on fees and charges.

4.    The charging model for District Heating (as agreed by Full Council, 13^th December 2017) is revised to allow for a planned deficit should energy price increases exceed scheme income.

5.    The unit charge per Kwh and weekly prepayment charges for District Heating Schemes is increased by 15% in 2022/23 (Option 1) to limit the impact of anticipated market increases in the prices of energy and fuel costs.

6.    Agree the draft Housing Revenue Account budget for 2022/23.

Consideration was given to the report which sought approval for the proposed values of the housing rents, non-dwelling rents, District Heating and service charges and the draft Housing Revenue Account Budget for 2022/23. The proposed charges were attached to the report at Appendix 1 and the proposed budget at Appendix 2.

The average rent in 2021/22 was £75.45 when aggregated over 52 weeks. The 2022/23 average weekly rent based on the Government policy of CPI (3.1% as at September 2021) plus 1% would be £78.54 totalling in an average increase of £3.09 per week. Rent increases in respect of shared ownership properties were subject to a different formula of RPI (4.9% as at September 2021) plus 0.5%. 51 shared ownership properties would be affected with rents increasing by £2.29 per week on average, from £42.41 to £44.70.

It was also proposed that there be a 2% increase in charges for garages and parking spaces, communal facilities, cooking gas and use of laundry facilities. This was in line with the Council’s policy on fees and charges.

Due to the current energy crisis and subsequent rise in gas prices, it was proposed that the charging model for District Heating, which had been agreed by Full Council in December 2017, be revised to allow for a planned deficit should energy price increases exceed scheme income. This would allow the Council to shield the most financially vulnerable residents from significant increases.

The Cabinet Member for Housing explained how the increase in rents and charges was necessary to fund the Council’s ongoing Housing Growth Programme and maintain properties to the Decent Homes Standard.

This report had been selected for pre-decision scrutiny by the Overview and Scrutiny Management Board held on 15th December, 2021. All of the recommendations were fully supported.

Resolved:

That Cabinet note the report and recommend to Council that:

1.    Dwelling rents are increased by 4.1% in 2022/23 (Option 1) in line with the Government policy on rents for social housing which allows rents to increase by Consumer Price Index (CPI) (3.1% as at September 2021) plus 1%;

2.    Shared ownership rents are increased by 5.4% in 2022/23 (Option 1) in line with the Government policy on rents for social housing which allows rents to increase by Retail Price Index (RPI) (4.9% as at September 2021) plus 0.5%;

3.    There is a 2% increase in charges for garages and parking spaces, communal facilities, cooking gas and use of laundry facilities, in line with the Council’s policy on fees and charges;

4.    The charging model for District Heating (as agreed by Full Council in December 2017) is revised to allow for a planned deficit should energy price increases exceed scheme income;

5.    The unit charge per KWH and weekly prepayment charges for District Heating Schemes be increased by 15% in 2022/23 (Option 1) to limit the impact of anticipated market increases in the prices of energy and fuel costs; and

6.    That the draft Housing Revenue Account Budget 2022/23, attached at Appendix 2, be agreed.