Agenda item

To consider and approve the Housing Revenue Account Rents and Service Charges 2022-23.

Further to Minute No. 83 of the meeting of the Cabinet held on 20^th December, 2021, 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.

Councillors Barley and A. Carter did not feel the increase in rents were moderate given the cost of living crisis, believing that with control the Council could do more to support its vulnerable citizens.

Councillors Beck, Cusworth, Hoddinott and Read disagreed with those Members opposed to the rent increases and believed this measured approach was the best way forward and would still allow the Council to invest in its housing stock yet safeguard the least off tenants.  They were in full support of the Council’s aspirations and the investment in future housing.

A recorded vote was requested.

(Members in favour – Councillors Alam, Allen, Atkin Aveyard, Baker-Rodgers, Beck, Bird, Brookes, Browne, Clark, Cooksey, Cusworth, Elliott,  Ellis, Griffin, Havard, Hoddinott, Hughes, Jones, Keenan, Khan, Monk, Pitchley, Read, Roche, Sansome, Sheppard, Taylor and Yasseen)

(Members against – Councillors Bacon, Ball, Barley, Baum-Dixon, A. Carter, C. Carter, Castledine-Dack, T. Collingham Z. Collingham, Fisher, Hunter, Mills, Miro, Reynolds, Tarmey, Thompson, Tinsley, Whormsley and Wooding)

(Members abstaining - The Mayor (Councillor Andrews), Councillors Bennett-Sylvester, Lelliott, McNeely and Wyatt)

Resolved:-  (1)  That dwelling rents be 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)  That shared ownership rents be 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)  That there be 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)  That the charging model for District Heating (as agreed by Full Council in December 2017) be revised to allow for a planned deficit should energy price increases exceed scheme income;

(5)  That 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.

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

Mover:-  Councillor Brookes                    Seconder:-  Councillor Allen